Grab-GoTo merger faces hurdle over Telkomsel’s stake: sources

Grab Holdings Ltd.’s planned acquisition of GoTo Group has encountered a setback due to Indonesian wireless carrier Telkomsel’s stake in GoTo, according to Bloomberg sources.

Telkomsel, majority-owned by state-controlled PT Telkom Indonesia, owns about 2% of GoTo and has expressed reluctance to sell at current valuations, citing its higher initial investment and concerns over losses linked to state capital, which is regulated by Indonesian law.

Negotiations are ongoing, with discussions about a separate structure to buy Telkomsel out, but no agreement has been reached.

The deal faces additional hurdles from potential regulatory opposition and political concerns, including rising ride prices and job impacts.

GoTo, with a market cap of around US$4.2 billion, and Grab, valued at around US$18.5 billion, have seen slowed growth amid increased competition and regulatory uncertainty.

The deal’s progress remains uncertain as negotiations continue.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

The 2% stake is a distraction from the real regulatory maze

Telkomsel’s roughly 2% stake has been treated as a hurdle, yet the bigger risk has been tied to post-merger regulatory review that was not explained.
After completion, the merger must be reported to Indonesia’s business competition watchdog, the Business Competition Supervisory Commission (KPPU), if it meets 5 trillion rupiah in Indonesian turnover or 2.5 trillion rupiah in worldwide assets with a local nexus 1.
A review lasting up to 90 business days can be conducted, with market competition checked plus impacts on national industrial development, technological innovation, and protection for small and medium enterprises (SMEs) 1.
Uncertainty is created because conditions can be imposed or a split-up can be ordered, which carries more risk than dealing with one minority holder 1.

New driver welfare rules could create demand for benefits and insurance administration services

A new draft decree could open business for tech firms beyond ride-hailing.
It would require platforms to cover accident insurance plus death insurance, and share payments for other benefits for about 7 million online motorcycle taxi drivers 2.
That obligation could lift demand for business-to-business (B2B) tools, giving insurance technology (insurtech) and financial technology (fintech) companies room to sell benefits management products.
The rules would also reach app-based logistics firms such as Lalamove and J&T Express, which would need to comply if the decree is enacted 2.