Indonesia's Grab and GoTo Merger Talks Advance with Government Oversight

Background and Current Status

The Indonesian government is closely monitoring the merger discussions between ride-hailing giants Grab and GoTo, with state-owned investment firm Danantara potentially playing a role in the deal ¹

Government Perspective and Regulatory Considerations

The government views the potential merger as a means to create a more competitive digital ecosystem while maintaining healthy competition in the market. Prasetyo Hadi emphasized that the merger would help companies operate optimally without unhealthy competition. The government also recognizes that both Grab and GoTo have created significant employment opportunities for Indonesian citizens.

Corporate Responses and Regulatory Compliance

R. A Koesoemohadiani, Director Legal and Group Corporate Secretary of GoTo, emphasized that no final decision has been made regarding the merger with Grab. He assured that any steps taken by GoTo would be in compliance with prevailing laws and regulations, prioritizing long-term value creation for shareholders and maintaining the best interests of various stakeholders including drivers, UMKM partners, and customers.

Danantara's Potential Role

Pandu Sjahrir, Chief Investment Officer of Danantara, indicated that the merger decision ultimately rests with Grab and GoTo, while Danantara will continue to monitor the business-to-business (B2B) aspects of the potential deal. He stated that Danantara will support the process while ensuring commercial returns and adhering to government input.

Market Implications

The potential merger between Grab and GoTo represents a significant development in Indonesia's digital economy, potentially reshaping the competitive landscape of the ride-hailing and e-commerce sectors. The process is being closely watched by industry stakeholders and investors, given the companies' status as publicly listed entities.