Danantara to follow government lead on Grab-GoTo merger talks

Indonesia’s state investment agency Danantara will follow government guidance on any potential merger between GoTo and Grab.

Danantara’s chief investment officer Pandu Sjahrir told reporters in Jakarta that the agency will listen to further instructions from the government regarding the deal.

Danantara said any support for the deal would depend on its commercial merits.

GoTo, a public tech company in Indonesia, and Singapore-based Grab have reportedly been the subject of merger discussions, according to government officials.

However, GoTo’s legal director RA Koesoemohadiani said no agreement or decision has been made regarding a merger with Grab.

GoTo also clarified that its upcoming extraordinary shareholders’ meeting on November 25 is unrelated to any merger plans.

The government has indicated that talks about a possible merger are part of broader discussions on regulations for ride-hailing services.

🔗 Source: CNN Indonesia

🧠 Food for thought

Implications, context, and why it matters.

Antitrust regulators wield the real power over deals

Danantara casts itself as a facilitator. Indonesia’s Competition Commission (KPPU, the national antitrust authority) runs post-notification reviews, where firms file after closing, and probes abuse of dominance 1.
A merged GoTo-Grab could hold about 91% of Indonesia ride-hailing 1. That share would trigger heavy scrutiny.
The KPPU chair flagged gaps in the law on platform dominance. The proposal adds definitions that cover data-driven and algorithmic control, such as pricing or recommendation power 1.
KPPU can use Article 47(2)(e) of the 1999 Law (Indonesia’s antimonopoly statute) to annul deals that create monopolistic practices 2. That power outweighs any state investor alignment as the main deal risk.

Driver protection rules could open compliance work for vendors

Indonesia’s Ministry of Manpower (the government agency overseeing labour policy) is drafting rules to protect ride-hailing drivers 3. In October 2024 officials said they hope to finish in Q4 2024 and stressed access to employment and health insurance 3.
Vendors with employment/benefits platforms, telematics, and human resources (HR) compliance systems can prepare now for rollout.
Planned government mediation between companies and drivers 3 could bring new contract practices. That shift would lift demand for legal tech and automated contract tools.
Payments firms and digital identity providers (firms that verify user identities online) can ride demand from more formal driver protections. Companies will need verified systems for benefits distribution and regulatory reporting.