photo: tctechcrunch2011

‘Grab 4 Indonesia’ 2020 Master Plan: Grab to Invest USD 700 Million

JAKARTA – Grab, the leading ride-hailing platform in Southeast Asia, has launched its ‘Grab 4 Indonesia’ 2020 master plan, endorsed by Badan Koordinasi Penanaman Modal (BKPM), the Government of Indonesia’s Investment Coordinating Board. Under the plan, Grab will invest USD 700 million (S$988.5 million) in Indonesia over the next four years to support Indonesia’s goal of becoming Southeast Asia’s largest digital economy by 2020.

‘Grab 4 Indonesia’ covers a range of programs that aim to provide all Indonesians an opportunity to move into the digital economy, including opening a Grab R&D center in Jakarta to develop technology innovations for the Indonesian market, launching a social impact fund to invest in companies focused on deepening financial inclusion, and increasing access to mobile payments and financing opportunities across the country.

The ‘Grab 4 Indonesia’ 2020 master plan follows a strong year of growth in Indonesia for Grab, with its GrabCar and GrabBike businesses each growing more than 600 percent over the course of 2016.

Grab now expands to more cities in Indonesia, including Jakarta , Bali , Bandung, Padang, Makassar, Medan , Surabaya and Yogyakarta. Grab stated it sees highly active user engagement and stickiness across its multi-service platform, with one in three of Grab’s Indonesian passengers using more than one Grab service.

BKPM Chief, H.E. Thomas Lembong said, “The ‘Grab 4 Indonesia’ 2020 master plan is testimony to Indonesia’s conducive business climate. We welcome companies like Grab who want to contribute to Indonesia’s economic progress and create jobs for Indonesians – to further strengthen the nation’s competitiveness in the global marketplace.”

H.E. Rudiantara, Minister of Communication and Information Technology said, “We want all Indonesians to benefit from information technology to improve their lives, develop new skills and build the next wave of global leaders in technology. Grab’s investment to train and hire more ICT professionals and mentor young entrepreneurs will accelerate the growth of Indonesia’s digital economy. This kind of app has to be positioned as a tool to spur and empower people and the economy.”

Anthony Tan , Group CEO and Co-founder, Grab , said, “As the largest homegrown technology startup in Southeast Asia , we are excited to make this significant investment in Indonesia’s future and accelerate their transition to a fully integrated digital economy. The ‘Grab 4 Indonesia’ 2020 master plan underlines our deep commitment to driving Southeast Asia forward and our excitement about the tremendous opportunities we see in Indonesia to help build and advance the country’s digital infrastructure and ecosystem.”

Grab’s master plan for Indonesia covers three major pillars:

  • Create new information technology jobs and upskill Indonesia’s human capital
    Grab will open an R&D centre in Jakarta and target hiring 150 engineers over the next two years. The R&D centre will focus on developing innovations specific to Indonesia by building on the success of Grab’s existing localised solutions, including algorithms to address new road regulations in Jakarta and GrabHitch (‘nebeng’ or joining).

To equip Indonesian engineers with globally competitive skills, Grab will provide training opportunities at its R&D centres in Singapore , Beijing and Seattle . Fresh graduates with curious minds and a passion to improve lives in Indonesia are welcome to apply.

  • Invest in technopreneurship for social good
    Grab will start the ‘Grab 4 Indonesia’ social impact investment fund to finance companies focused on deepening financial inclusion across all cities and income levels in Indonesia . Grab will invest up to USD 100 million (S$141.2 million) in startups or aspiring technopreneurs to grow the next wave of Indonesian companies with social aspirations to bring more Indonesians into the digital economy. The fund will focus on the mobile and financial services industries, with a particular emphasis on serving smaller cities and communities who have yet to benefit from the digital economy.

In support of the ‘1,000 Digital Startups National Movement’ initiated by the Government, Grab will organise a series of entrepreneurship programs in collaboration with selected partners including educational institutions and entrepreneurship organisations.

  • Expand access to mobile payments and financing opportunities
    Grab will continue to launch and enhance mobile services to increase Indonesians’ access to mobile payments and financing opportunities. Grab will expand its mobile payment solutions in Indonesia through GrabPay Credits, its cashless stored value option, and existing partnerships with Bank Mandiri and their e-Cash solution, while also continuing to develop a shared e-money payments platform with Lippo Group and Nobu Bank to enable all Indonesians to use Grab to pay for services and goods at Lippo’s retail partners.

In addition, Grab will provide its driver partners with access to more financing opportunities to purchase their own smartphones and automotive vehicles, giving them the opportunity to build sustainable livelihoods and become micro-entrepreneurs.

Indonesia is Grab’s largest market in Southeast Asia. Since its launch in 2012, Grab has evolved from a simple app for booking a taxi into the largest ground transportation app in Southeast Asia. To date, the company has more than 630,000 drivers and 33 million downloads across the region.