Home News Japan’s Softbank, Grab Holdings Invests US$2B in Indonesia

Japan’s Softbank, Grab Holdings Invests US$2B in Indonesia

Singapore' ride-hailing company Grab Holdings Inc., get another US$2 billion funds and will investing in Indonesia - Photo by TheInsiderStories

JAKARTA (TheInsiderStories) – Singapore’ ride-hailing company Grab Holdings Inc., get another US$2 billion funds and will investing in Indonesia. Last March, one of the leading apps in Southeast Asian received funding from Softbank Vision Fund and other investors worth of $1.46 billion.

With this Series-H funding round, so far Grab has received more than $4.5 billion. Other investors included in the Series-H funding round are Toyota Motor Corp., Oppenheimer Funds, Hyundai Motor Group, Booking Holdings, Microsoft Corporation, Ping An Capital, and Yamaha Motor Corp.

“We have already invest $2 billion in Grab and now we would invest another $2 billion as a new investment. We would invest more in Grab then also encourage more in another company,” said Masayoshi Son, Chairman and CEO of Softbank after met President Joko Widodo at the President Palace, Jakarta, on Monday (07/29).

He continued, Softbank and Grab planned to create second headquarter in Jakarta and aimed to bring Grab Indonesia become the fifth unicorn in the country. On top of that, Son stated, the company also aimed to investing in new investment like renewable energy solar, wind, and geothermal projects in the archipelago.

Son explained, Softbank and Grab will invest to create a next-generation transport network for Indonesia’ electric vehicle ecosystem that will drive cities toward greener and cleaner transportation grid.

“We would study about the opportunity but we will interest in in electric vehicle, the batteries and charging system. We will create ecosystem. We would like to bring blue sky back,” said Son.

Both companies also launch affordable e-healthcare service in Indonesia within the next three months, aiming to increase access significantly to doctors and medical service for all Indonesians.

Coordinating Minister for Maritime Affairs Luhut Binsar Panjaitan added, that president invited Softbank to invest more in small company and other infrastructure projects in Indonesia, especially in electric car, lithium battery and some other platform in infrastructure of electric vehicles.

“One ecosystem will be built. Starting from the construction of the lithium battery, motorcycle, bus to the charging station. A pilot project in Jakarta. We are targeting in three years that it must be completed,” said the minister.

In Feb. 20, Panjaitan said South Korea’ Hyundai Motor Corp., and Grab looking a business partnership for the projects in the field of electric cars. Hyundai want to immediately invest in Indonesia with a value around US$269 million.

It’s estimated, with this investment, Hyundai will build an assembly plant with a production capacity of 250,000 units per year, including for electric vehicles. Hyundai has been active 15 years in Indonesia through PT Hyundai Mobil Indonesia Motor since 1995.

While, through an e-commerce player Tokopedia, Softbank aimed to develop artificial intelligence (AI) to help the goods distribution more efficient at the company. William Tanudjaja, founder and CEO of Tokopedia said, the retailer planned to develop “Gudang Pintar” (Smart Warehouse) all over the nation.

To realize the planned, Tokopedia aimed to have minority stake at local logistic company. He stated,”We have an intention to invests more in AI to spread the economic equality digitally in the country.”

End of last year, Softbank and Chinese Alibaba Group pledge a $1.1 billion funding round for Tokopedia. The company is also received funding from Softbank Ventures Korea and the existing investors. In 2017, Alibaba has poured $1.1 billion investment to Tokopedia, the first direct investment by the company in Indonesia.

Founded in 2009, Tokopedia has become the place for million small retailers to develop business across Indonesia as Southeast Asia largest market. The company raised major investment of $100 million from Softbank Ventures Korea and Sequoia in 2014 for the first time.

This major investment from the investors will lead Tokopedia to become unicorn with the valuation of $1 billion after GO-JEK, a ride-hailing company bearing status as the first unicorn company in Indonesia with the valuation of $1.3 billion.

SoftBank Vision Fund, a multinational conglomerate holding company headquartered in Tokyo, has announced it pledges about $108 billion to invests around the globe.

Since 2017, Grab has invested more than $1 billion in Indonesia through Grab4 Indonesia 2020 master plan. As part of the $2 billion investment, which is from the close $3 billion capital that Softbank has invested into Grab, the first decacorn in Southeast Asia aims to double the number of micro-entrepreneurs across the nation in five years period. So far Grab has created five million companies.

According to CSIS and Tenggara Strategic research report, in 2018, Grab contribution to Indonesia’ economy was approximately Rp48.9 trillion ($3.49 billion).

US$1: Rp14,000

by Linda Silaen, Email: linda.silaen@theinsiderstories.com