Grab Holdings and Indonesia’s GoTo Group are reportedly considering granting a “golden share” to Indonesia’s sovereign wealth fund Danantara as they seek government backing for a potential merger.
According to a Financial Times report on Wednesday (Nov. 12), the merger talks include a proposal to give Danantara a minority stake in the combined group, with special rights over the Indonesian operations.
Danantara was launched in February to manage assets of Indonesia’s seven largest state-owned enterprises, with a combined portfolio of more than $900 billion.
The Indonesian government regards the ride-hailing sector as a crucial source of employment and a key driver of economic activity. A merged Grab–GoTo group would command more than 91% of Indonesia’s market.
A source cited in the report said the ride-hailing business is rife with political tensions because of its vast driver base. The Indonesian government considers the ride-hailing industry an important source of jobs and a vital part of the economy.
Grab and GoTo had a combined market value of $72 billion when they went public in 2021 and 2022, respectively.
A Reuters report on Thursday (Nov. 13, which cited sources with knowledge of the matter, said the Indonesian government fully backs a possible merger between GoTo and rival Grab after initially opposing a deal. The sources added that Grab Chief Executive Anthony Tan recently met President Prabowo Subianto to lobby for the transaction.
Pandu Sjahrir, Danantara’s Chief Investment Officer, has said that the merger remains a business-to-business decision between the companies, as cited in local media reports on Tuesday.
According to the reports, Sjahrir said that Danantara would observe and support the process where appropriate while emphasising that commercial return considerations would remain central, alongside compliance, as both firms are publicly listed.
In a statement, GoTo said it has consistently backed government policies that will benefit driver-partners and merchants, including those involving mergers or acquisitions.
GoTo, however, clarified that it had not reached any decision or agreement regarding a transaction with Grab and emphasised that it would continue to comply with governance and disclosure rules as a listed company.
It added that its current focus remains on executing strategic priorities and progressing towards sustainable profitability.
Grab and GoTo have been in on-and-off merger discussions over the past few years, but the latest round has been seen as the most advanced negotiations the parties have had, according to people aware of the development.
