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View all search resultsPotential GoTo-Grab merger stirs concern over govt overreach
The government has confirmed ongoing merger talks between GoTo and Grab, with state asset fund Danantara taking part in the process amid mounting losses from the state-owned firm’s investments in GoTo.
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Logos of “Go-Jek” and “Grab” are seen on the helmets of an online motorcycle taxi driver and his passenger on Nov. 12 in a traffic jam on Jl. Basuki Rachmat in Jakarta. (The Jakarta Post/Iqro Rinaldi)
D
espite repeated denials from GoTo and Grab, Southeast Asia’s two biggest ride-hailing giants, regarding any concrete plan to merge, media reports and government statements suggest that Jakarta is quietly pushing for the deal to move forward.
Experts, however, warn that “excessive” political involvement could tilt the transaction in favor of select shareholders, including state-owned enterprises, while sidelining the interests of the broader public.
Rumors of a merger between GoTo and Grab have circulated since 2020, resurfacing every now and then without confirmation.
This speculation returned to the spotlight after State Secretary Prasetyo Hadi confirmed on Friday that a merger plan was indeed being discussed. The talks, he said, are part of a broader government effort to draft a presidential regulation governing online motorcycle taxi services and the future of the sector.
Prasetyo noted that discussions remain at an early stage and involve multiple stakeholders, including state asset fund Danantara and driver representatives, often referred to as “driver-partners.”
The move signals yet another show of government involvement in the ride-hailing industry. In March, President Prabowo Subianto ordered both companies to grant holiday bonuses to their drivers, and in October, he told a cabinet meeting that the government had been engaging with platform operators to seek solutions for managing competition in the sector and “prevent harmful rivalry.”
Danantara chief investment officer Pandu Sjahrir said on Tuesday that the state asset fund would take the government’s views into consideration while ensuring that any decision remains grounded in business logic.
