FILE PHOTO: Employees pack goods at GoTo's e-commerce unit Tokopedia's warehouse in Jakarta, Indonesia, August 31, 2022. - Reuters
SINGAPORE/JAKARTA: The Indonesian government fully backs a possible merger between ride-hailing and food delivery firm GoTo and Singapore-based rival Grab after initially opposing a deal, two sources with knowledge of the matter said on Wednesday (Nov 12).
State investment fund Danantara Indonesia was also in talks to take a "golden share" in the combined entity, the sources told Reuters. A golden share typically gives its holder veto rights over key decisions, even if it owns only a small stake. Jakarta had opposed the planned deal and sought guarantees of better fees and bonuses for drivers, Reuters reported in June.
The two sources said Grab Chief Executive Anthony Tan recently met President Prabowo Subianto to lobby for the transaction.
The government and Danantara did not respond to requests for comment.
Grab declined to comment on the meeting and the planned deal. A presidential spokesperson said last Friday that the government was discussing a possible merger or acquisition involving GoTo and Grab.
GoTo said earlier on Wednesday that it has consistently backed government policies that will benefit driver-partners and merchants. This includes "if it's achieved through a merger, acquisition, or any other strategic corporate action."
A merger would reshape Southeast Asia's largest ride-hailing and food delivery market, where GoTo's Gojek and Grab have dominated for years.
A combined entity would hold a market share of over 91 per cent in Indonesia, according to data analytics company Euromonitor International.
But regulatory hurdles remain, including antitrust scrutiny and conditions to protect driver income, sources previously told Reuters. - Reuters
