Indonesia is actively discussing a potential merger or acquisition between ride-hailing giants Grab and GoTo, according to presidential spokesperson Prasetyo Hadi, who confirmed on Friday that a decision would come soon as the government views the sector as strategically vital for job creation and economic growth.
Minister of State Secretary Prasetyo Hadi revealed that the merger discussions are part of broader negotiations regarding presidential regulations on online ride-hailing services, though the specific structure—whether merger or acquisition—has not yet been finalized.
Indonesia's sovereign wealth fund Danantara is expected to participate in the consolidation process, though Prasetyo declined to elaborate on the fund's exact role or the timeline for completing the deal, emphasizing only that the government aims to work as quickly as possible.
GoTo's Gojek division alone employs over 3.1 million online riders, and a combined Grab-GoTo entity would control more than 91 percent of Indonesia's ride-hailing market, according to data analytics firm Euromonitor International.
The Indonesian Business Competition Commission has raised concerns about potential monopolistic practices, with observers questioning whether Danantara's involvement could distort market competition by positioning a state institution as both regulator and minority operator in a government-backed entity.
