Indonesia's Emtek group invests $375 million in Grab's Indonesian unit

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FILE PHOTO: A Grab motor driver is seen in a street in Jakarta, Indonesia, February 13, 2017. REUTERS/Beawiharta

 

SINGAPORE (Reuters) - Indonesian media conglomerate Elang Mahkota Teknologi (Emtek) is investing $375 million in ride-hailing and payment firm Grab's Indonesia unit, the companies said in a statement on Monday, in what they described as a "strategic alliance."

 

The deal is the latest tie-up between Singapore-headquartered Grab, the region's biggest ride-hailing and food delivery firm, and Southeast Asian conglomerates, including a strategic investment by Thailand's Central Group in 2019.

 

The Indonesian conglomerate holds stakes in media companies as well as a controlling stake in e-wallet DANA and a stake in e-commerce site Bukalapak.

 

Two sources told Reuters that the deal is in part intended to lead to a shake-up in the digital payments sector and help Grab increase its stake in e-wallet OVO.

 

Reuters reported in 2019, citing sources, that OVO and DANA were in talks to merge.

 

Grab, OVO, DANA, and Emtek did not immediately answer requests for comment.

 

-- © Copyright Reuters 2021-07-26