GrabBike driver Joni parts ways with his children before going to work. (Photo Courtesy of Grab Indonesia)
Emtek Invests $375 Million in Grab Indonesia
BY :SHANNON CHAI TJOKRORAHARDJO, HERU ANDRIYANTO
JULY 27, 2021
Jakarta. Indonesian media conglomerate Elang Mahkota Teknologi, or Emtek, has invested $375 million in tech company Grab Teknologi Indonesia to expand partnership in digital economy and help create opportunities for millions of local entrepreneurs, executives from both companies said on Monday.
The partnership is expected to empower logistical ecosystem, e-commerce, financial services, telemedicine, digital media and technological support for kiosks and traditional shops, Emtek Group Managing Director Emtek Group Sutanto Hartono said.
Emtek and Grab also aim to leverage digital technologies and digitized data across the country that will create revenue opportunities for millions of Indonesians.
"Grab has exceptional technological advantages and the desire for innovations with proven leadership down to the operational levels, making them the right partner for us. We are pleased to establish a partnership with Grab in empowering digital infrastructure and building digital economy accessible to all in Indonesia," Sutanto said.
Grab Indonesia Country Managing Director Neneng Goenadi said the partnership allows Grab to use Emtek’s vast media network and e-commerce platform Bukalapak to reach micro, small and medium enterprises and open access to its digital services to broaden their consumer base with the help of technology.
"Together, we are committed to creating more digital solutions to accelerate economic recovery in Indonesia,” Neneng said.
The collaboration has launched an initiative to help SMEs in a more digitalized world, with an event scheduled for September in Solo, Central Java, involving around 1,000 SMEs.
Digital technology support will be expanded to 7 million small-scale traders in Bukalapak, of which Emtek is one of the biggest shareholders, and digital food trading platform GrabMart.
During Monday’s joint press conference, top government officials welcomed the partnership which they said will help distribute economic opportunities to the most remote places in the country.
"Hopefully the Grab-Emtek Group collaboration will take Indonesia into world’s five biggest digital economies by involving SMEs and providing technological supports accessible to the disabled, women and SMEs in remote and underdeveloped areas,” Coordinating Minister for the Economy Airlangga Hartarto said.
“Hopefully this will accelerate the process of digitalizing Indonesia as there is a new population who has started to take advantage of the digital economy during this pandemic.”
SMEs make up 99 percent of Indonesian business model, but only 21 percent are on the digital ecosystem. The President Joko Widodo government has targeted to digitalize 30 million SMEs.
“I appreciate this collaboration and hope that it will give a positive impact on Indonesia and result in improvements and innovations that will develop and build the community of SMEs,” Cooperatives and SME Minister Teten Masduki said.