Invest $700 Million, Grab Build R&D Center in Indonesia

After announcing new commissioner in the management ranks Grab Indonesia a few days ago, today officially Grab announced his grand plan for Indonesia. Group CEO and Co-Founder Grab Anthony Tan in Jakarta announced that he would spend $700 million to build a Research and Development (R&D) center in Indonesia and several other initiatives over the next 4 years. The plan named "Grab 4 Indonesia" is supported by the Indonesian Investment Coordinating Board (BKPM).

"Indonesia is a country that contributes the most to Grab. To support existing growth, Grab will invest in Indonesia by establishing an R&D Center and recruiting local young workers who can later contribute to Grab and Indonesia,” said Anthony.

Master Plan 2020 Grab 4 Indonesia is assessed according to business growth Grab more than 600% in 2016. Grab 4 Indonesia will later cover several activities, including the construction of an R&D Center Grab in Jakarta which serves as the Technology Innovation Development Center for the Indonesian market. To expedite regulations and supporting matters needed, BKPM will oversee Grab during the investment process.

"We from BKPM will ensure that the investment provided by Grab has been running in accordance with the rules and regulations in Indonesia. In this case BKPM will coordinate with related parties to expedite the investment process," said Head of the Investment Coordinating Board (BKPM) Thomas Lembong.

BKPM itself welcomes the investment provided Grab for Indonesia. Not only establishing an R&D center but also focusing on increasing financial inclusion and increasing access to mobile payments and financing opportunities throughout Indonesia.

“The BKPM noted that only 30% of Indonesians have bank accounts, meaning that Indonesian people are still low on awareness to take advantage of financial facilities. With the presence of an R&D center later, it is hoped that it will increase skill Indonesia's workforce is still lacking," said Thomas.

By cooperating with BKPM, Grab want to implement localization and of course adjust to existing rules and regulations. This was also emphasized by Anthony, especially for Indonesia which has character and differences in terms of traffic order and other habits.

Creating jobs in the field of information technology

Within the next two years, Grab Indonesia will recruit 150 engineer in Indonesia. The R&D center, which will be present in Jakarta, will become a center for developing innovations aimed at Indonesia adapted to the Indonesian market. This includes new algorithms related to the new traffic regulations in Jakarta and GrabHitch (Nebeng), a service available to nearly 1,4 million commuters in Jakarta.

“Previously we have established R&D centers in Singapore, Beijing and Seattle and Indonesia is the fourth country for R&D centers Grab. To assist the mentoring process in the Jakarta R&D center, we will invite mentors from the three representatives of the R&D center to help Indonesia," said Anthony.

In the inauguration ceremony Grab 4 Indonesia, the Minister of Communication and Informatics Rudiantara gave his appreciation.

“I am very excited about the plan Grab build an R&D center in Indonesia as Apple will later do. Associated with the business model of Grab the Indonesian government fully supports it because it will directly improve the standard of living of the Indonesian people," said Rudiantara.

Support startups and driver partners Grab

Apart from setting up an R&D center, Grab will also invest in technopreneurship by helping selected startups accelerate their product penetration process into the market with capital investment and technical assistance from Grab. Next Grab will also continue to launch and develop mobile services, in order to increase Indonesian people's access to mobile payments and financing opportunities in Indonesia.

"Innovations that we will present include through GrabPay Credits, non-cash payment options and a partnership that has been established with Mandiri and e-Cash solutions and continues to develop an e-money payment platform together with Lippo Group and bank Nobu to enable users to use Grab in payment for services and goods at various Lippo retail outlets," said the Managing Director Grab Indonesia, Ridzki Kramadibrata.

When in Grab Indonesia already has around 100 thousand driver partners and is available in 8 cities in Indonesia. As a form of appreciation Grab Indonesia to driver partners, Grab will provide access in the form of financing to buy and own smartphone and motorized vehicles. Grab Indonesia claims from the revenue side, partners from Grab more benefits compared to transportation service providers on demand others in Indonesia.

"Since the beginning we have been committed to targets and long-term economic growth in Indonesia, including by creating jobs through developing our business in new cities and employing local teams as well as providing attractive opportunities for driver-partners," said Ridzki.