Response from GRAB Indonesia

Tirza Munusamy, the public affairs chief of GRAB Indonesia, stated, “These merger speculations are not based on verified information, so we are unable to provide other comments.” This statement reflects the company’s stance on the ongoing speculation.

Market Rumors and Financial Advisers

Reports from Bloomberg and Reuters indicated that GRAB had sought legal and financial advisers to facilitate a merger agreement with Goto. Sources suggested that the transaction might be finalized by the second quarter of 2025. If realized, the deal, estimated at around $7 billion (IDR 114.8 trillion), would signify a major consolidation in Southeast Asia’s tech landscape.

Focus on Local Economic Contribution

While addressing the rumors, GRAB emphasized its commitment to bolstering its operations in Indonesia and enhancing local economic participation. Tirza Munusamy elaborated, “Our priority is to empower small businesses and provide sustainable income opportunities to Indonesians.”

Previous Merger Rumors

This is not the first time that merger rumors between GRAB and Goto have surfaced. Similar discussions emerged in February 2024, which Goto subsequently dismissed at that time.

Concerns Over Foreign Ownership

The renewed speculation about a merger has stirred a public debate regarding GRAB’s status as a foreign-dominated entity. In response, the company clarified that it operates in Indonesia as a legally registered foreign investment entity (PMA), emphasizing that 99% of its workforce in Indonesia consists of local employees, with only a single executive role held by a foreign national.

Commitment to Indonesia’s Digital Economy

Tirza reaffirmed the importance of local leadership in shaping Indonesia’s digital economy, stating, “We believe that the future of the digital economy of Indonesia must be led by Indonesians. GRAB Indonesia is a collective effort by and for the inhabitants of Indonesia.”

Recent Performance of Goto and Grab

Goto, which resulted from the 2021 merger of Gojek and Tokopedia, reported solid results for the first quarter of this year. The company saw a 37% year-on-year increase in net turnover, totaling IDR 4.2 trillion, while reducing its quarterly loss from IDR 420 billion to IDR 276 billion.

Meanwhile, Grab Holdings Ltd. reported a 17% year-on-year revenue increase in Q2 2024, reaching $764 million. The company experienced a rise in Gross Merchandise Value (GMV) to $5 billion and reported a net profit of $11 million for the quarter, achieving a record adjusted EBITDA of $97 million.