Singapore-based Grab is taking its business taking a notch higher every few days, be it raising funding, unveiling instant in-app messaging, partnering with self-driving car startup, or the latest hiring a government insider.
Now, the company is unveiling a slew of initiatives to give Uber a tough competition in Southeast Asia. It is launching ‘Grab 4 Indonesia’ 2020 master plan, under which it will be investing a humongous $700 million in Indonesia over the next four years.
Indonesia is already largest economy of SEA and world’s fourth most populated nation. Grab, with the master plan, intends to support Indonesia’s aim to be the region’s largest digital economy by 2020.
Endorsed by Badan Koordinasi Penanaman Modal (BKPM), the Government of Indonesia’s Investment Coordinating Board, the plan will enable Indonesians to move into the digital economy by rolling out a few programs.
Rosan Roeslani, Chairman of the Indonesian Chamber of Commerce and Industry, said,
The government and the private sector must work hand in hand to invest in human capital and enable Indonesia to move up the value chain. Grab’s investment into the long-term future of Indonesia and opening of its R&D centre in Jakarta will boost our technology sector and provide more economic opportunities to all Indonesians.
Grab will be unveiling an R&D Centre in Jakarta to develop technology innovations for the Indonesian market. The centre will develop innovations specific to Indonesia by building on the success of Grab’s existing localised solutions, including algorithms to address new road regulations in Jakarta. The company will also provide training opportunities at its R&D centres in Singapore, Beijing and Seattle to inculcate engineers with globally competitive skills.
The ride-hailing firm will be launching a social impact fund to invest in companies focused on deepening financial inclusion. Via the ‘Grab 4 Indonesia’ social impact investment fund, it will finance companies focused on strengthening financial inclusion across all cities and income levels in the country.
By fueling $100 million in startups or aspiring technopreneurs, it will encourage the next wave of companies with social aspirations.
The fund is going to target the mobile and financial services industries, with a specific emphasis on serving smaller cities and communities who are yet to benefit from the digital economy. It will also enable the selected startups to accelerate their products to market by providing both capital investment and technical assistance from Grab.
Grab will host a series of entrepreneurship programs partnering with selected partners including educational institutions and entrepreneurship organisations as part of “1,000 Digital Startups National Movement” initiated by the Government of Indonesia.
Also, as a part the 2020 master plan the cab aggregator will increase access to mobile payments and financing opportunities across the country.
In Indonesia, it will further expand its mobile payment solutions through GrabPay Credits, its cashless stored value option, and existing partnerships with Mandiri and their e-Cash solution. Simultaneously, it will continue 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.
Anthony Tan, Group CEO and Co-founder, Grab, said,
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.
