Indonesia’s Sovereign Wealth Fund Explores Stake in Grab-GoTo Merger

Indonesia’s newly established sovereign wealth fund, Danantara Indonesia, is reportedly in early discussions to acquire a minority stake in the potential combined entity formed by ride-hailing and food delivery rivals Grab and GoTo. According to a Bloomberg News report on Friday, the move aims to alleviate concerns within the Indonesian government over Singapore-headquartered Grab’s ownership of the country’s largest tech company.

The deal, which is still in the negotiation phase, could see Grab valuing GoTo at approximately $7 billion. Grab is targeting a deal closure within the second quarter, though recent progress has slowed amid regulatory reviews by Indonesia’s antitrust authority. The regulator began studying potential risks associated with the merger last month to ensure fair competition and address any national security concerns.

Danantara Indonesia, launched in February, serves as Indonesia’s sovereign wealth vehicle and is designed to invest in strategic sectors including metal processing and artificial intelligence. The fund consolidates government stakes in various state-owned enterprises and is modeled after Singapore’s Temasek Holdings, aiming to foster national economic growth and technological advancement.

Neither Grab, GoTo, nor Danantara Indonesia have commented on the talks, but sources close to the matter indicate the discussions continue as stakeholders work through regulatory hurdles.

If completed, the transaction would mark a significant consolidation in Southeast Asia’s tech landscape, potentially strengthening Indonesia’s influence in the regional digital economy while balancing foreign ownership concerns.