Grab has announced that it will be investing US$700 million (RM3.1bil) in Indonesia over the next four years to support the republic’s aim to become the country with the largest digital economy in the region by 2020.

Unveiling its Grab 4 Indonesia master plan earlier today, the Singapore-based ride-hailing platform said that the action will incorporate a series of programmes aimed at providing opportunities for the switch to a digital economy.

These include the development of a Grab research and development centre in Jakarta and recruiting 150 engineers over the next two years. The centre will focus on developing innovations and solutions specifically intended for Indonesia, including new algorithms associated with traffic regulations in Jakarta.

The plan will also provide the release of funds to develop social impact enterprises. Grab said it will invest up to US$100 million to fund startups to accelerate the development of technologies that will encourage more people to switch to a digital economy.

The Grab 4 Indonesia plan will also seek to expand access to mobile payments and financing opportunities throughout the country. The company said it will widen its mobile payment solutions through its GrabPay Credits cashless payment system, and partnerships have been forged with Mandiri on an e-Cash system. It will also continue to develop its e-money payment platform together with Lippo Group and Nobu Bank.

Additionally, Grab says it will give its driver partners better access to financing opportunities to buy a smartphone and own a vehicle, which will provide these operators the chance to build a sustainable source of wealth and become micro-entrepreneurs.

“We are very happy to have made a significant investment for the future of Indonesia to encourage the country’s transition to a fully digital economy. The plan underlines our commitment to help build and develop the infrastructure and the digital ecosystem in Indonesia,” said Grab co-founder and CEO Anthony Tan.

In September last year, the company raised US$750 million (RM3.32 billion) in equity financing, effectively increasing its total capital position to over US$1 billion (RM4.43 billion).