Uber-competitor Grab has announced its plans to invest $ 700 million in Indonesia over the next four years. The majority of the funding will be used f
Uber-competitor Grab has announced its plans to invest $ 700 million in Indonesia over the next four years. The majority of the funding will be used for Fintech development, and more specifically mobile payment and financial services, wrote cryptocoinnews.com.
Singapore-based ride-hailing company Grab already has a presence in Southeast Asian countries. Indonesia is one of Grab`s largest markets.
According to grab.com, 2020 master plan follows a strong year of growth in Indonesia for Grab, with its GrabCar and GrabBike businesses earning significant revenues.
“The government and the private sector must work hand in hand to invest in human capital and enable Indonesia to move up the value chain. Grab’s investment into the long-term future of Indonesia and opening of its R&D centre in Jakarta will boost our technology sector and provide more economic opportunities to all Indonesians.”, said Rosan Roeslani, Chairman of the Indonesian Chamber of Commerce and Industry in an interview with grab.com.
The Grab R&D centre in Jakarta has set a goal to develop technology innovations for the Indonesian market, said Grab on their website grab.com. The project will be focused on launching a social impact fund to invest in companies which work to deepen financial inclusion and increasing access to mobile payments and financing opportunities across the country, explained Grab.
The company currently has similar centres in Singapore, Beijing and Seattle. The investment in Indonesia is in line with government plans to make Indonesia the largest digital economy in the region by 2020, commented cryptocoinnews.com.
As of December 2016, OJK figures showed that 135 fintech start-ups registered in the country, up from 51 recorded in the first quarter of 2016. There is an expected annual growth of 20% in Fintech transactions, while transactions within Fintech platforms in Indonesia are said to reach $37.1 billion by 2021, concluded cryptocoinnews.com.