The value of the proposed merger could be as much as $7.1 billion.
Indonesia’s Business Competition Supervisory Commission (KPPU) has issued a public warning regarding the potential merger between tech giants Grab and GoTo, emphasizing the importance of compliance with national competition laws.
KPPU Chairman M. Fanshurullah Asa addressed growing media speculation over the anticipated merger, which is anticipated to be valued at Rp 114.8 trillion (US$7.1 billion).
He clarified that under Indonesia’s mandatory post-merger notification system, as stipulated in Law No. 5/1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition, the KPPU cannot assess mergers or acquisitions until a formal notification has been filed − no later than 30 days after the transaction becomes effective.
“As long as the Grab-GoTo merger remains speculative, KPPU cannot provide a formal assessment. However, the involved parties are welcome to submit a voluntary consultation,”
Asa said as quoted in a statement on Thursday, May 22, 2025.
In a proactive move, the KPPU has begun independent research to identify potential competitive impacts and policy adjustment options should the merger materialize. If a formal notification is submitted, KPPU will conduct a comprehensive review under its 2023 regulation, evaluating issues such as market entry barriers, anti-competitive behavior risks, efficiency gains, support for national industrial development, technological innovation, and protection for small and medium enterprises (SMEs).
Asa also asked companies to conduct self-assessment to ensure that their transactions will not pose risks to fair competition.
“If law violation is found, KPPU holds the authority to impose administrative sanctions, including nullifying the merger,”
he asserted.
Grab operates throughout Southeast Asia but is listed on the Nasdaq in the United States. It mainly does ride-hailing and deliveries, but has recently branched out into financial services.
GoTo is the parent company of Gojek, the ride-hailing super app that took Indonesia by storm starting around 2015. Gojek is an indispensable part of life for many people who live in cities in Indonesia and has been touted as something of a national success story. Gojek merged with Indonesian e-commerce platform Tokopedia in 2021 (that is where the moniker GoTo came from) and then went public on the local stock exchange in a blockbuster IPO that raised over $1 billion and gave the company a nearly $30 billion market valuation.
If successful, the deal could lead to a major reshaping of the region's consumer technology sector. According to experts, a merger of GoTo and Grab can severely reduce competition for ride-hailing and food delivery services in the region. In addition, Indonesian authorities view GoTo as an important national project that serves a very useful function in the Indonesian economy by boosting consumption and allowing small businesses to increase sales. The parties to the merger may face the fact that the Indonesian government probably does not want to see GoTo owned by a foreign company.
Source: Indonesia Business Post
