Danantara open to Grab-GoTo deal, awaits further details

Indonesia’s state investment agency Danantara is monitoring ongoing merger talks between GoTo and Grab, two major ride-hailing and delivery companies in Southeast Asia.

Danantara CEO Rosan Roeslani said the agency is open to joining the deal but will wait until details become clearer, including on pricing and structure.

He emphasized that the welfare of ride-hailing drivers should be a key priority if Danantara becomes involved.

Roeslani said both companies have full freedom to manage their merger process.

GoTo said it supports the Indonesian government’s efforts to strengthen the national digital ecosystem and will comply with all relevant policies and regulations.

The discussions between GoTo and Grab are ongoing, and no final agreement has been reached.

🔗 Source: Republika

🧠 Food for thought

Implications, context, and why it matters.

Antitrust scrutiny will determine if this deal happens at all

A combined Grab and GoTo would control about 85% of Southeast Asia ride-hailing GMV (gross merchandise value, the total value of transactions processed on their platforms), above KPPU dominance thresholds at 50% for one firm or 75% for two to three 1.
The 2018 Grab-Uber deal led to a S$13 million penalty from Singapore’s competition authority for anti-competitive concerns 2. KPPU began research before formal notification 3. KPPU can impose sanctions, including voiding a merger, if it finds violations 3. The firms must prove competition will continue with benefits for consumers and small businesses, not shareholders alone 1.

Insurtech and fintech vendors can win business from gig worker benefits mandates

Indonesia plans to subsidize 50% of employment insurance contributions for motorcycle taxi drivers, covering JKK (Jaminan Kecelakaan Kerja or work-accident insurance) plus JKM (Jaminan Kematian or death benefits) and JHT (Jaminan Hari Tua or old-age savings) 4. Only 250,000 of 2 million drivers have BPJS (Badan Penyelenggara Jaminan Sosial, Indonesia’s national social security agency) employment protection via BPJS Ketenagakerjaan (the workers’ social security program) 5.
An operator that centers driver welfare creates room for insurtech (insurance technology) plus fintech (financial technology) bundles, with 54% of drivers willing to pay higher commissions for health or accident insurance and maintenance 6. Regulation No. 12/2019 requires enrollment in BPJS Kesehatan and BPJS Ketenagakerjaan, yet enforcement remains weak with 1.7 million workers still without BPJS employment protection 7 5.