Grab, GoTo in merger talks: Indonesian minister

Singapore-based Grab and Indonesia’s GoTo are in talks to merge, according to the Indonesian state secretariat minister Prasetyo Hadi.

Prasetyo said Indonesia’s sovereign wealth fund Danantara may be involved in the potential merger.

He also said the proposed merger is being discussed as part of a draft presidential regulation on the status, protection, and fares for online motorcycle taxi drivers.

The regulation is still being finalized with input from driver partners and app companies.

🔗 Source: Bloomberg Technoz

🧠 Food for thought

Implications, context, and why it matters.

Antitrust approval depends on Indonesia’s Business Competition Supervisory Commission (KPPU) view of market power, while debates on foreign control continue

A combined Grab-GoTo would push ride-hailing share above 90% 1. Digital payments plus food delivery could reach 85% 1. Indonesian law treats such dominance as harmful to competition, which draws a heavy review 1.
KPPU warned of possible violations and began a study, yet it cannot open a formal review until a post-transaction filing arrives 2. This setup blocks early action, so regulators learn only after consolidation closes 3.
Policymakers juggle the digital hub goal with fears over foreign control of GoTo, seen as a national project for small businesses 3 2. Recent rejections in Singapore and Taiwan raise the regional bar, so approval looks uncertain despite possible efficiencies 1.

Fintech and insurtech providers can build compliance solutions for the forthcoming driver regulation

A draft presidential regulation sets benefits for ojol (online motorcycle taxi) drivers, including Work Accident Insurance (JKK) and Death Insurance (JKM), with technical details to follow 4. Issuance is expected in 2025 5.
Fintech and insurtech firms plus human resources technology (HR tech) players can build portable benefits platforms (benefits that follow workers across apps) 6. They can offer earnings protection tools or compliance systems that platforms must run to meet the rule 6. The government is finalizing technical specs with stakeholders 6.
Vendors have a near-term opening with B2B tools for Grab, GoTo, and smaller rivals. Sell compliance without slowing driver ops.