SoftBank, Grab in talks for potential investment in Indonesia’s new capital

SoftBank Group Corp. chairman and CEO Masayoshi Son has indicated interest in investing in Indonesia’s new capital city in East Kalimantan. Son, accompanied by Grab CEO and co-founder Anthony Tan, today met Indonesian president Joko Widodo.

From left: Grab CEO Anthony Tan, SoftBank chairman and CEO Masayoshi Son, Indonesian coordinating minister for maritime affairs Luhut Binsar Panjaitan, and Grab Indonesia president Ridzki Kramadibrata outside the Merdeka Palace in Jakarta after a meeting with Indonesia President Joko Widodo in 2019 / Photo credit: Grab

Following the meeting with the president, Son said that he had not discussed the exact amount of investment, but he mentioned that he is interested to invest in the new capital city, which has a new concept revolving around smart cities, green initiatives, and AI development.

“Grab CEO Anthony Tan and SoftBank group chairman and CEO Masayoshi Son met with Joko Widodo, president of Indonesia, today, where they furthered their discussion on potential areas of collaboration, including developing smart cities, with green initiatives across Indonesia,” a Grab spokesperson told KrAsia.

In August 2019, Son was in Jakarta to meet the president. At the time, SoftBank declared it would inject US$5 billion in investments into Indonesia, including for electric vehicle development in Southeast Asia’s largest economy.

Earlier this week, Luhut Binsar Pandjaitan, the coordinating minister for maritime affairs and investment, announced that Son would arrive in Jakarta today. According to a local news outlet, Pandjaitan said SoftBank would be ready to invest up to US$100 billion in the new capital in 25 years, which Pandjaitan said was “too good to be true” and suggested that SoftBank invest around US$25 billion for the next five years.

This is not the first time the Japanese investment group is investing in smart cities. In 2018, SoftBank invested in Dublin City Council’s Smart City program and its Smart Docklands District testbed related to smart city solutions. Last year, SoftBank also announced a partnership with the Lippo Group to develop AI and internet of things in Lippo properties.

This report was first published on KrAsia.