SoftBank to pour $2b into Indonesia’s digital infrastructure through Grab

Southeast Asian ride-hailing giant Grab is set to invest US$2 billion into Indonesia over a five-year period with capital from Japan’s SoftBank to accelerate the development of the country’s digital infrastructure.

From left: Grab CEO Anthony Tan, Softbank CEO and chairman Masayoshi Son, Indonesia 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 / Photo credit: Grab

The initiative was announced following a meeting between Indonesia President Joko Widodo, SoftBank CEO and chairman Masayoshi Son, Grab CEO Anthony Tan, and Grab Indonesia president Ridzki Kramadibrata.

With the investment, the Singapore-based company plans to create a transportation network for Indonesia based around an electric vehicle ecosystem. Grab and SoftBank also look to develop geo-mapping solutions in a bid to drive the country’s development and adoption of future technologies.

The investment will also go towards development of how critical services like health care are delivered, according to a statement.

“Indonesia’s technology sector has huge potential. I’m very happy to be investing US$2 billion into the future of Indonesia through Grab,” said Son.

Grab also announced plans to build a second headquarters in Indonesia that will house its research and development center in Jakarta. It is also set to be the dual headquarters for the GrabFood business and will focus on developing solutions catered for micro-entrepreneurs.