Ride-hailing company Grab has announced its plan to invest $2 billion in Indonesia over the next five years using funds from SoftBank to speed up the country’s development of digital infrastructure.
The announcement was made after a meeting between Indonesian President Joko Widodo; Masayoshi Son, chairman, and chief executive officer of SoftBank Group; Anthony Tan, chief executive of Grab; and RidzkiKramadibrata, president of Grab Indonesia.
Japan’s SoftBank, which invested $1.46 billion in Grab earlier this year, seeks to expand its presence in Indonesia through this latest investment.
The billion-dollar investment will be used to create a next-generation transportation network across Indonesian cities and to transform the way how critical services, like healthcare, are delivered.
The investment will intensify the company’s rivalry with Go-Jek. The two companies already compete in other Southeast Asian markets but the Indonesian market is seen as a more promising one due to its internet-savvy population.
A part of the investment will also go into developing electric vehicles and geo-mapping technology.
Masayoshi Son told the media that, “We will study the opportunities. We are interested in electronic vehicles, batteries, and the charging systems.”
The investment will help Indonesia achieve its goal of digitisation of services and infrastructure.
Grab revealed its plans to launch affordable e-healthcare services in Indonesia within the next three months. The company aims to increase accessibility to doctors and medical services for the people of Indonesia.
Grab also plans to establish its second headquarters in Indonesia, which will provide employment to a larger number of Indonesians.
Grab has earlier secured funding from carmakers Toyota and Hyundai Motor, as well as tech giant Microsoft, China’s Ping An Capital and US-based asset management company OppenheimerFunds. In June it had secured $300 million from investment management company Invesco. Grab is currently valued at $14 billion. It plans to raise around $6.5 billion in total capital by the end of the year.