GRAB Market Expansion of Online Transportation Businesses in Indonesia

ABSTRACT: This research aims to determine the impact of market expansion carried out by Grab, an online transportation service provider company from Singapore, on the online transportation business in Indonesia. The research method used in preparing this thesis is a descriptive method, with data collection techniques in the form of literature reviews sourced from various literature such as books, journals, articles, official internet sites, news portals, and reports related to this research. The results of this research show that the market expansion activities carried out by Grab in Indonesia have had an impact, namely the enactment of the latest regulations and laws regarding online transportation business operations in Indonesia. Apart from that, the presence of Grab in Indonesia also revives competition in the online transportation business in Indonesia in the initial process of its development, several experts believed the science of International Relations covered all relations between countries, was very dynamic and developed in accordance with the conditions of the natural environment and the conditions of the human social environment. In Schwarzenbeger’s opinion, International Relations is the subject of sociology which studies international society. In this way, the science of International Relations in a general sense does not only cover politics, but also includes other elements such as social, economic, cultural, defense and security, tourism, and cultural exchange. (Perwita & Yani, 2005). The dynamic scope of International Relations science and the increasing development of the times have finally given rise to other elements of International Relation’s science. One of them is the element of international trade which is part of the economic element of the science of International Relations. Barro (2003) explains that economic growth is closely related to the openness of a country’s economy, where international trade will have a positive and significant impact on economic growth. Therefore, almost every country has carried out international trade activities. The driving factors why countries carry out activities are differences in natural resources, differences in production factors, different economic conditions, not all countries can produce certain goods, the existence of a profit motive in trade, and competition between nations.

Keywords: GRAB, Online Transportation, Business Service, E-commerce, Indonesia