Indonesia’s ‘state-loss trap’ and why SOE giants may be too scared to sell
The Grab-GoTo merger has reportedly hit an impasse as government-backed Telkomsel resists a sale that could expose it to tough legal consequences
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[JAKARTA] Indonesia’s “state-loss” doctrine has long blurred the lines between a bad commercial bet and a loss to the state, exposing executives at state-owned enterprises (SOEs) to risk when investments turn sour.
Jakarta updated the law last year to plug some of these concerns, but old fears still linger.
The issue has drawn renewed attention after being cited as a key obstacle to the proposed merger between Grab and GoTo, based on a Bloomberg report.
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