Indah Handayani, Jakarta – The possible merger between Singapore's Grab and Indonesia's GoTo Gojek Tokopedia (GOTO) is back in the spotlight as the deal could potentially reshape Indonesia's ride-hailing landscape.
Legal expert Lita Paromita Siregar said Tuesday the consolidation could trigger major regulatory hurdles, from competition oversight to worker protection, given the pair's combined grip on the market. It is estimated that the merged entity could command around 91 percent of Indonesia's ride-hailing share.
"If this merger materializes, the government must ensure there is no monopoly or excessive market dominance. Any consolidation must still build a fair, sustainable digital ecosystem," Lita said.
She underscored the need for algorithm transparency, warning that unclear rules may worsen income disparities for drivers, especially if one dominant entity controls job distribution.
"Drivers remain in an uncertain position, are they partners or workers? Regulators cannot rush this, because the social impact is huge," said the Managing Partner of BP Lawyers Counselors at Law.
Lita added that such dominance would pressure smaller competitors like Maxim and InDrive, potentially reducing consumer choice, triggering fare increases, and creating algorithmic bias against drivers. She urged the government and the Business Competition Supervisory Commission (KPPU) to prevent the rise of a "single giant" capable of setting prices and operating rules unilaterally.
Beyond competition issues, Lita highlighted risks to data security and digital sovereignty, stating that both companies manage data from tens of millions of users. Centralizing this information could raise exposure to breaches or misuse, especially with parts of their tech infrastructure hosted overseas.
"User data must be handled under national security standards. Strong regulation is key to protecting digital sovereignty without stifling innovation," she said.
Lita emphasized the merger's broader implications for the livelihoods of millions of drivers. Clear rules are needed on transparency, competition supervision, and social protection.
"This kind of major shift requires the government to protect a competitive, secure digital ecosystem that still protects drivers as the backbone of online transport services," she said.
Bloomberg reported in June that Indonesia's sovereign wealth fund Danantara is in early talks to participate in Grab Holdings' proposed $7 billion acquisition of GoTo Group, a move that could ease regulatory hurdles and address concerns over foreign control of a national tech champion.
The proposed deal would mark one of Southeast Asia's biggest tech consolidations if it can navigate Indonesia's regulatory and political landscape.
People familiar with the matter told Bloomberg that Danantara has opened preliminary discussions with GoTo to acquire a minority stake in the combined entity. The inclusion of a state-backed investor could alleviate political unease about the Singapore-based Grab taking over a major Indonesian digital player.
Indonesia's antitrust agency KPPU warned in May that it would closely examine the transaction to prevent monopolistic practices.
GoTo clarified last week that it has not yet made any merger decision or agreement with regional ride-hailing rival Grab.
GoTo's spokesperson R.A. Koesoemohadiani said any future corporate action would comply fully with Indonesia's public company regulations and prioritize long-term shareholder value while safeguarding the interests of driver-partners, MSME partners, customers, and all stakeholders.
Source: https://jakartaglobe.id/business/what-a-grabgoto-merger-means-for-ridehailing-in-indonesi