Grab, GoTo plan $29b merger that may give Danantara ‘golden share’

Grab and GoTo are in talks to merge and may offer Indonesia’s sovereign wealth fund, Danantara, a “golden share” to secure regulatory approval, according to people familiar with the matter.

The proposed merger would create a US$29 billion company controlling 90% of Indonesia’s ride-hailing and food delivery market.

Danantara, launched in 2025 and managing US$900 billion in state assets, could receive special rights over the merged entity’s Indonesian operations, including input on driver pay.

Singapore-based Grab and Indonesia’s GoTo, which operates the Gojek service, have held intermittent merger discussions for years, but talks have intensified in 2025.

Indonesian officials have confirmed discussions but said the government is not an investor in either company.

GoTo has about 3.1 million drivers in Indonesia, serving a growing gig economy workforce.

Analysts caution that previous merger talks have failed, and delays remain possible.

Separately, GoTo shareholders, including SoftBank, have called for the removal of CEO Patrick Walujo amid falling share prices.

No final agreement has been reached.

🔗 Source: Financial Times

🧠 Food for thought

Implications, context, and why it matters.

A “golden share” for Danantara may not prevent KPPU scrutiny or remedies

Offering Danantara a golden share (a special veto or control right) could show government support. It does not skip KPPU review because any deal above 50% market share triggers a monopoly check 1, and the combined entity has 90%.
KPPU treats monopoly as legal, yet anticompetitive behavior is illegal, and the agency can set “syarat atau remedial” after companies file the deal 2.
A golden share might aim to improve driver welfare, but KPPU weighs harm to consumers and market players 2, so sell-offs or price commitments could still be required regardless of Danantara’s role.

Gig economy platform providers can build on evolving driver welfare policies and compliance needs

For fintech (financial technology) and insurtech (insurance technology) firms, Indonesia is pushing driver welfare. The Ministry of Manpower’s 2025 circular urges a Religious Festivities Bonus (BHR) for online drivers 3, and Government Regulation (PP) No. 6/2025 pays 60% of last salary for six months after job loss 4. That shift creates demand for large-scale payout and compliance tools.
Rules on driver employment status remain unclear 3. Providers that offer flexible contract management, BPJS (Badan Penyelenggara Jaminan Sosial) social insurance enrollment, plus automated benefit calculations can serve platforms that face murky classifications.
Investors in tech and mobility should watch this trend. Welfare proposals are expanding before any merger, so any service in Indonesia’s gig economy will meet comparable compliance needs, which widens the market beyond Grab-GoTo 3.