Indonesia is exploring a potential merger or acquisition involving the country’s leading ride-hailing and food delivery companies, Grab and GoTo, according to a statement from the presidential spokesperson on Friday. The discussions highlight the government’s focus on the digital mobility sector, which it views as a strategic industry for job creation and economic growth.
GoTo’s Gojek unit alone employs over 3.1 million online riders, while both GoTo and Grab have long been dominant players in Indonesia’s ride-hailing and delivery market. Data from Euromonitor International indicates that a combined Grab-GoTo entity would control more than 91% of the domestic market, underscoring the scale of the proposed consolidation.
Government spokesperson Prasetyo Hadi emphasized that a decision on the matter is expected soon. “Online riders are economic heroes, driving the economy,” he said, reflecting the government’s recognition of the sector’s role in supporting livelihoods and economic activity.
Reports suggest that Nasdaq-listed Grab has been considering a potential acquisition of GoTo since the second quarter of this year, enlisting advisers to assess the feasibility of the deal. Sources familiar with the discussions have indicated that the acquisition could value GoTo at around US$7 billion (RM29.23 billion).
GoTo is currently majority-owned by international investors, with SoftBank Group and Taobao China Holding—a subsidiary of Alibaba Group—holding a combined 73.9% stake, while the remaining shares are held by Indonesian investors, according to the company’s 2024 annual report.
Neither Grab nor GoTo has provided an immediate comment on the ongoing discussions. If finalized, the merger or acquisition would represent a major consolidation in Indonesia’s digital transportation sector, potentially reshaping competition and the operational landscape for ride-hailing, delivery, and related digital services in the region.
This move comes amid a broader trend in Southeast Asia, where ride-hailing platforms are increasingly exploring strategic partnerships, mergers, or acquisitions to strengthen market positions and achieve operational efficiencies in a rapidly evolving digital economy.
