Golden share gives Jakarta sway in emerging Grab-GoTo merger

With a mega-merger between Grab and GoTo inching closer after years of on-again, off-again speculation, the Indonesian state appears set to take center stage, putting itself at the heart of Southeast Asia’s digital landscape.

Danantara, the country’s sovereign wealth fund, could be granted a golden share in the US$29 billion merger. Analysts think this signals the government’s goal of having tighter control over key tech assets, particularly platforms that serve millions daily across ride-hailing, food delivery, payments, logistics, and ecommerce.

Image credit: Timmy Loen

Edward Gustely, co-founder and managing director of Penida Capital Advisors, says a deal granting Danantara special veto rights would help protect domestic interests.

“It ensures Indonesia has a say over corporate actions that affect national security interests, such as dependence on foreign technology and capital allocators underwriting the digital economy,” he says.

For Grab and GoTo, the sovereign fund’s involvement could smooth regulatory approvals, while giving the state a direct say in a multi-service platform.

Win-win-win?

Earlier this month, Prasetyo Hadi, Indonesia’s state secretary, confirmed Danantara’s involvement in the proposed merger between GoTo Gojek Tokopedia, the country’s largest publicly listed tech company, and Singapore-based Grab Holdings.

In response to media speculation over the deal, GoTo said in mid-November that “as of now, no decision or agreement has been made in relation to the matter.”

Danantara’s involvement in a merged company would give it valuable insights as the government drafts new regulations affecting digital services, consumer data, fintech, and competition, according to Gustely.

In June, Tech in Asia predicted that Danantara’s participation in the deal could be a match made in Indonesian tech heaven, if it could get over the line.

Photo credit: Danantara

The sovereign fund could protect local champions from foreign control and ease monopoly concerns, while also giving its reputation a boost after some tough publicity. However, not everyone was on board.

“There might be a ‘nationalistic’ justification for Danantara’s participation in the deal,” an industry source told Tech in Asia at the time. “But should a sovereign wealth fund be making investment decisions for nationalistic sentiment or optics?”

What monopoly?

Cautious optimism