Beside Electric Transportation, Grab Plans to Work on a Mobile Phone Recycling Business in Indonesia

Grab on-demand service company examines business opportunities in cellphone recycling in Indonesia. The government invites Grab to invest in the mobile recycling industry because of its great potential to support the national digital economy.

Grab said that he was still discussing with the government the business opportunities of the cell phone recycling industry.

“Grab agreed with the importance of having an affordable cellphone and is discussing with the government about this (cellphone recycling),” Grab Indonesia’s Deputy Head of Public Affairs Tirza Munusamy said, some time ago.

President of Grab Indonesia Ridzki Kramadibrata explained that recycling or remanufacturing to produce more affordable cellphones in the community in order to increase the potential of the digital economy in Indonesia is projected to reach US $ 100 billion.

The Coordinating Minister for Economic Affairs of Indonesia, Airlangga Hartarto during the Tech For Good panel discussion session and lunch with Grab at the World Economic Forum 2020 last week stated that the presence of affordable smartphones is very important to improve the digital economy for as many Indonesians as possible.

Industry Minister Agus Gumiwang Kartasasmita also said that he had discussed the plan with Grab. “I have also talked to Grab. They have the intention to invest in remanufacturing of mobile phones that are relatively old or damaged, which will become new mobile phones,” Agus said in a press release in Jakarta, Sunday (1/26).

The Mobile Phone Industry in Indonesia Has Increased Rapidly in the Past 5 Years

According to Agus, the domestic mobile industry has experienced fairly rapid growth in the number of productions over the past five years. Data from the Ministry of Industry in 2018 shows that the production of the Mobile, Computer, and Tablet (HKT) industry reached 74.7 million units.

That number increased by 23% from 2017 which produces around 60.5 million units. Based on trade balance data, HKT products show a positive trend. HKT industrial export records in the period from January to August last year reached US $ 333.8 million.

The amount is higher than imports in the same period amounting to US $ 145.4 million. From the rapid development of the HKT industry, Agus said he wanted to provide protection for domestic producers, including users.

He also hoped that investment in the cellphone recycling industry could reduce the entry of illegal mobile phones into Indonesia, which could potentially cause state losses.

“The government issued a policy on the International Mobile Equipment Identity (IMEI), which will protect our industries and markets from black market goods. In addition, customers will be guaranteed a quality product,” Agus said.

Grab has Pioneered Electric Transportation Services and Will Develop e-Healthcare in Indonesia

So far Grab has contributed to the development of two developing industry guidelines. First on the economic platform, second on artificial intelligence (AI) technology.

Since last year Grab has created a roadmap to develop the electric vehicle ecosystem in Indonesia. There have been 20 electric cars and 20 electric motors that Grab has tested. The Singapore-based company will also develop geo-mapping solutions to encourage technology adoption in Indonesia.

Grab cooperates with Hyundai in realizing electricity transportation called GrabCar Electric. This service has been operating at Soekarno Hatta Airport since Monday, January 27, 2020. President of Grab Indonesia Ridzki Kramadibrata said, GrabCar Electric is a form of their support for the creation of the EV ecosystem in Indonesia.

In Indonesia, in addition to being actively building urban transportation networks that are supported by electric vehicles, Grab is also trying to try out online health services or e-healthcare.

This aims to improve access to doctors and health services for all Indonesian people, especially in eastern Indonesia.