Indonesia’s sovereign wealth fund, Danantara, is reportedly exploring a role in the proposed US$7 billion (RM29.6 billion) acquisition of GoTo Group by Grab Holdings Ltd, a potential move that could enable the Indonesian government to retain partial ownership in one of Asia’s leading digital platforms.
Preliminary discussions have been initiated between Danantara and GoTo regarding the acquisition of a minority stake in the merged entity, according to individuals familiar with the matter. Such an arrangement may help address national concerns over the sale of a homegrown technology company to Grab, a Singapore-based firm.
While both Grab and GoTo have progressed in shaping a potential deal structure, negotiations have slowed in recent weeks due to concerns surrounding regulatory scrutiny. In May, Indonesia’s antitrust authority announced it would investigate the merger’s potential impact and called on both firms to ensure the agreement would not result in monopolistic behaviour.
In this context, Danantara’s potential participation could enhance the likelihood of regulatory approval from the Indonesian government, which is expected to pose the greatest hurdle for the transaction. However, the discussions are still in early stages and may not result in a formal agreement. It remains uncertain whether Danantara has held direct discussions with Grab.
Spokespersons for Grab, GoTo and Danantara have declined to comment on the matter.
The two companies have engaged in intermittent merger talks for years, though no agreement has materialised, largely due to antitrust risks associated with combining Southeast Asia’s two largest ride-hailing and food delivery providers. Since exiting Southeast Asia in 2018, Uber Technologies Inc has retained a stake in Grab. Despite competition from smaller players, Grab and GoTo continue to dominate market share in Indonesia and Singapore.
The potential sale of GoTo has triggered concerns within Indonesian political circles regarding national autonomy and the preservation of local technology jobs. Some officials have expressed apprehension about potential price increases in ride-hailing and food delivery services should Grab achieve dominant market control, particularly at a time when consumers face economic headwinds.
One of the potential mitigations being discussed includes a commitment by Grab to maintain employment levels for a set period post-merger.
The Indonesian government is concurrently navigating market uncertainty triggered by the populist measures implemented by President Prabowo Subianto. Since assuming office late last year, the 73-year-old former general has enacted a series of populist policies, including raising the minimum wage, expanding consumer subsidies, curtailing central bank independence, and adopting a firm stance toward foreign businesses. In March, he ordered both Grab and GoTo to provide holiday bonuses to their drivers.
According to reports by Bloomberg News, Grab is evaluating GoTo at over US$7 billion, with one option under consideration being an all-stock transaction priced at approximately 100 rupiah per share. GoTo’s shares closed at 61 rupiah on Thursday, 5 June.
A proposed sequence involves GoTo first acquiring Grab’s Indonesian ride-hailing and food delivery operations. Subsequently, Grab would take a majority stake in the new entity, thereby assuming control over GoTo’s Indonesian operations. Concurrently, GoTo would divest its Singapore-based ride-hailing business to a third party.
Grab, headquartered in Singapore, is currently Southeast Asia’s largest ride-hailing and delivery platform, maintaining leadership in key markets including Malaysia and Thailand. GoTo, while having exited countries such as Thailand and Vietnam amid aggressive cost-cutting efforts, remains a significant player in Indonesia, the region’s most populous country with over 275 million residents.
Acquiring GoTo would reinforce Grab’s foothold in Indonesia, particularly as emerging competitors like InDrive and Maxim continue to expand their presence. Grab’s revenue from Indonesia rose 6.3% to US$643 million in 2024, marking the company’s slowest growth among Southeast Asian markets.
-Bloomberg
