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

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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.

Grab Eyes $7 Billion Acquisition of GoTo in Q2, But Regulatory Hurdles Loom

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Grab Holdings (GRAB.O) is reportedly working to finalize a deal to acquire Indonesian tech giant GoTo (GOTO.JK) in the second quarter of 2025, in what would be a transformative merger in Southeast Asia’s digital economy, multiple sources told Reuters. If completed, the deal could value GoTo at around $7 billion, making it one of the largest consolidations in the region’s ride-hailing and delivery sectors.

Singapore-based Grab has hired advisers and is currently in discussions with banks to finalize financing. Meanwhile, GoTo has acknowledged awareness of potential proposals but stated no decisions have been made.

Under the current proposal:

  • GoTo would divest its international business entirely

  • In Indonesia, GoTo would sell all operations except its finance arm to Grab

Grab—backed by Uber—offers services in ride-hailing, food delivery, and fintech, while GoTo, which counts SoftBank and Taobao China Holding as investors, is Indonesia’s largest digital ecosystem spanning e-commerce, logistics, and digital banking.

Market Dominance and Regulatory Concerns

A merger would give Grab control of 85% of Southeast Asia’s $8 billion ride-hailing market, including a 91% market share in Indonesia and nearly 90% in Singapore, according to Euromonitor International.

“Markets, especially in Indonesia and Singapore, will impose strict scrutiny,”
said David Zhang, Euromonitor’s insights manager in Asia.

Talks between the two companies have been on and off for years, largely due to competition concerns. Analysts warn that regulators may see such a consolidation as anti-competitive—especially amid broader antitrust crackdowns and rising consumer costs driven by macroeconomic volatility and global tariffs.

However, some voices argue a merger could be beneficial.

“Indonesian authorities may adopt a more pragmatic approach,” said Niko Margaronis of BRI Danareksa Sekuritas, noting potential long-term value creation and operational strengthening.

The antitrust backdrop is tense: in March, Uber’s $950 million bid for Delivery Hero’s Foodpanda in Taiwan was blocked, over concerns that it could stifle competition and lead to price hikes.

While the Grab-GoTo deal is still under negotiation and not finalized, its outcome could reshape Southeast Asia’s digital landscape, with implications for consumers, competitors, and regulators alike.

Grab Eyes Q2 Acquisition of Indonesian Rival GoTo in $7 Billion Deal, Raising Antitrust Concerns

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Grab Holdings is working toward a deal to acquire Indonesian rival GoTo in the second quarter of 2025, in a move that could dramatically reshape Southeast Asia’s ride-hailing and delivery landscape, sources familiar with the matter told Reuters. The proposed deal, valued at around $7 billion, is currently under negotiation with advisors and banks, and remains subject to financing terms.

Grab, which is headquartered in Singapore and listed on the Nasdaq, seeks to acquire GoTo’s international unit in Singapore, as well as its entire Indonesian operations excluding its finance arm, sources said. GoTo, which provides e-commerce, food delivery, and digital financial services, is backed by SoftBank and Taobao China Holding and is widely seen as Indonesia’s largest digital ecosystem.

A deal between the two would result in a dominant regional player controlling an estimated 85% of Southeast Asia’s $8 billion ride-hailing market, according to Euromonitor International. In Indonesia, the merged entity would hold over 91% market share, and nearly 90% in Singapore, raising significant antitrust concerns.

“Markets, especially in Indonesia and Singapore, will impose strict scrutiny,”
said David Zhang, Euromonitor’s insights manager for Asia, noting the high likelihood of regulatory blocks in key markets.

Still, some analysts believe Indonesian regulators may adopt a more pragmatic stance. According to Niko Margaronis of BRI Danareksa Sekuritas, authorities might weigh the long-term economic value and competitive strength that could result from consolidating two major tech players.

This potential merger follows increased regulatory pushback against consolidation in Asia’s digital services sector. In March, Uber dropped a $950 million bid for Delivery Hero’s Foodpanda in Taiwan after authorities blocked the deal on anti-competition grounds.

Grab, backed by Uber, offers delivery, ride-hailing, and financial services across Southeast Asia. Its shares are up 2.4% year-to-date, with a market value of nearly $20 billion, while GoTo has seen a 20% rise in 2024, reaching a market value of about $5.8 billion, per LSEG data.

Both Grab and GoTo declined to comment on the report.