Softbank to Invest More on Grab and Tokopedia

Softbank Group stated to add up $2 billion (more than Rp28 trillion) for Grab. The fresh money will be allocated to develop the next generation of city transport, also the essential service transformation, such as the health industry.

The Japanese conglomerate is said to invest more on another portfolio in Indonesia, Tokopedia.

The announcement is made by Softbank's Chairman and CEO, Masayoshi Son after meeting Indonesia's President, Joko Widodo (7/29) at Istana Merdeka, Jakarta. Accompanied by Grab's CEO, Anthony Tan, Grab Indonesia's President, Ridzki Kramadibrata, and Tokopedia's CEO, William Tanuwidjaya. Also participated in the event Coordinating Minister for Maritime Affairs, Luhut Binsar Pandjaitan and Head of the Investment Coordinating Board, Thomas Lembong.

“We're to invest $2 billion through Grab. Tokopedia is indeed very important for us to make it grow even bigger,“ he said as quoted from Bloomberg, Monday (7/29).

Son officially revealed on a different occasion that the Grab investment is to accelerate digitization on some essential services and infrastructure projects. Grab and Softbank will create the next generation of the transportation network for Indonesia with the environment-friendly electric vehicles.

Both companies are to build a geo-mapping solution in Indonesia to accelerate local development and future technology adoption.

In addition, as part of the long-term commitment, Grab is to build the second HQ in Indonesia. It'll be a home for the R&D Center and headquarter for GrabFood.

Thus, Grab can serve better for Indonesia's unique demand and focus on creating solutions that support SMEs and Grab-Kudo agents.

The HQ should provide career opportunities for dozens of talents and improve their skills in terms of technology through partnerships with Indonesia's top lists of universities.

Grab's CEO, Anthony Tan represented his team to make a long-term commitment in this country's development. He believes through investment for the essential services and infrastructure projects digitization, Indonesia is on its way to being the biggest economy digital in Southeast Asia.

Moreover, Luhut Binsar Pandjaitan added to the development of electric vehicles, there will be trials in Jakarta. It should be finished in three years, along with Softbank investment.

He also said Softbank investment in Indonesia for the next three years could reach $5 billion (over Rp70 trillion), it includes the latest $2 billion for Grab.

The investment, he thought, is to be placed in small startups, such as Aruna in the maritime sector. “We're on a discussion, it might be for SMEs, not only Grab and Tokopedia,“ he said, quoted from Katadata.

–Original article is in Indonesian, translated by Kristin Siagian