Indonesia Supports GoTo and Grab Merger Amid Regulatory Hurdles

The Indonesian government now supports the proposed merger between GoTo and Grab after initially opposing it. Talks include state fund Danantara Indonesia seeking a "golden share". This merger could dominate Southeast Asia's ride-hailing and food delivery market despite regulatory challenges.

The Indonesian government, after initial resistance, now fully supports a potential merger between ride-hailing giant GoTo and its Singapore-based rival, Grab. Sources revealed that the state investment fund, Danantara Indonesia, is involved in discussions to secure a 'golden share' in the merged entity, granting veto rights on key decisions.

According to insider information, Grab's Chief Executive, Anthony Tan, recently met with President Prabowo Subianto to lobby for this strategic alliance. While neither the government nor Danantara have commented, a presidential spokesperson confirmed that discussions are underway regarding the merger or acquisition involving GoTo and Grab.

If successful, the merger would reshape Southeast Asia's ride-hailing and food delivery landscape, commanding over 91% market share in Indonesia. However, the deal faces significant regulatory challenges, including antitrust investigations and measures to protect driver incomes.

(With inputs from agencies.)