Dubbed the brand new emerging economic region, Southeast Asia has seen an enormous surge in investment related to the brand new digital economy. Thousands of latest digital startups call the region home, disrupting the way in which business is completed in many of the developed countries within the region. Grab, some of the influential startups in Southeast Asia, began in Malaysia and moved its headquarters to Singapore. And now Indonesia is attempting to make the corporate its next national unicorn.
Indonesian Communications and Information Technology Minister Rudiantara is attempting to persuade Grab to maneuver its headquarters to the archipelagic country, CNN Indonesia reported. Rudiantara said Grab already has a market, most of its drivers are staff, and it has made plenty of investments and acquisitions in Indonesia. “Why not move the headquarters to Indonesia? And become an Indonesian unicorn,” he said.
Unicorn is the name of a digital company that’s valued at $1 million. Indonesia currently has 4 unicorns, including Go-Jek, a digital ride-hailing company. Go-Jek is well-known as Grab’s foremost competitor within the region and is currently expanding outside Indonesia, reminiscent of to Thailand and Vietnam.
Becoming an Indonesian unicorn will give Grab numerous incentives offered by the Indonesian government: lower taxes and easier business administration. These incentives might be a way for Indonesia to prove that it’s a haven for digital startups, especially for a lot of which have a huge impact on the country’s economy.
Meanwhile, Grab Indonesia CEO Ridzki Kramadibrata said the corporate would consider the invitation. “It’s a good invitation and it shows that the government is very welcome to an international company that focuses on Indonesia,” Ridzki replied.
Indonesia is an enormous market, Ridzki said, and its residents are easy adopters of latest technologies. That might be a bonus for the corporate’s growth strategy within the region.
By February, Grab was operating in 137 cities and claims to be the market leader within the ride-hailing industry with a 65 percent market share in Indonesia. Grab also partnered with OVO, an e-wallet service in Indonesia that’s utilized in most major shopping malls within the country.
Will Grab, with many reasons to maneuver its headquarters to Indonesia, make the choice? We can only wait.
