UNAIR NEWS – The possible merger between PT GoTo Gojek Tokopedia Tbk and Grab has sparked considerable public debate. Although no official confirmation has been made by either party, the speculation has stirred widespread reactions due to the two companies’ dominant positions in Indonesia’s ride-hailing industry.
Commenting on the issue, Professor Dr. Rahmat Setiawan, an economist from Universitas Airlangga’s Faculty of Economics and Business (FEB UNAIR), emphasized the national significance of GoTo as a homegrown startup. In most mergers, the smaller company in terms of assets, revenue, and operational scale is typically absorbed. If GoTo were to be acquired by Grab, Prof. Setiawan noted, it would be disheartening from a national pride perspective.
Growing threat of market dominance
Should the merger proceed, the combined entity would control roughly 91% of Indonesia’s online transportation sector. Prof. Setiawan cautioned that such a consolidation could lead to monopolistic behavior, stifling competition and limiting consumer choices.
“The Grab–GoTo merger opens the door to predatory pricing,” he said. “They may start by slashing prices, capitalizing on improved efficiency. This would eliminate competitors, and once they dominate the market, they could freely set prices at consumers’ expense.”
Prof. Setiawan warned that a monopoly of this magnitude could damage Indonesia’s economy over time. A lack of competition in the ride-hailing space would likely lead to stagnation in service quality and innovation. “When competition disappears, there’s no incentive to improve. Yet consumers will have no alternatives,” he added.
Implications for ride-hailing drivers
Beyond consumer impacts, Prof. Setiawan also highlighted concerns for ride-hailing drivers. Many drivers currently use both Grab and Gojek platforms to increase their income. A merger could remove this flexibility and reduce their earnings.
He urged the public to remain alert and engaged. “This kind of corporate consolidation requires social oversight,” he said. “Experts and academics have a responsibility to raise awareness and help the public understand the broader consequences of a potential monopoly.”
Author: Khumairok Nurisofwatin
Editor: Khefti Al Mawalia
