Indonesia’s GoTo says it supports government policies, including potential mergers

[JAKARTA] Indonesian ride-hailing firm GoTo said on Wednesday (Nov 12) that it has consistently backed government policies that will benefit driver-partners and merchants, including those involving mergers or acquisitions.

The statement comes days after a spokesperson for the Indonesian president said the government was discussing a possible merger or acquisition involving GoTo and its ride-hailing and food delivery rival Grab.

“The company... (has) always supported government policies relating to the improvement of driver-partners and merchant welfare, including if this is to be achieved through a merger, acquisition or any other strategic corporate action,” GoTo’s corporate secretary RA Koesoemohadiani said in a statement.

Grab declined to comment on the GoTo announcement.

The Indonesian government considers the ride-hailing industry an important source of jobs and a vital part of the economy.

GoTo’s Gojek unit alone has partnered with more than 3.1 million riders, and together with Grab, it has dominated the Indonesian market for several years.

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A combined entity would hold a market share of over 91 per cent in Indonesia, according to data analytics company, Euromonitor International. REUTERS