GOTO - Meger Talks Face Regulatory Scrutiny

GOTO - Meger Talks Face Regulatory Scrutiny PT GoTo Gojek Tokopedia Tbk (GOTO) rumored merger with Grab which potentially involving Indonesia’s sovereign fund Danantara as a minority investor has drawn close scrutiny from Singaporean regulators over concerns of state influence and anti-competition risks, while Indonesia is drafting special regulations to facilitate the deal. Both companies have denied any formal agreement, but the market is watching closely given GoTo’s weak post-IPO performance, Grab’s push to consolidate regional dominance amid Meituan’s entry threat, and TLKM’s existing investment exposure through its subsidiary MDI Ventures, which could face governance scrutiny amid ongoing investigations. Comment: For investors, regulatory and governance risks remain key overhangs near term. A merger could unlock synergies and scale, but execution and antitrust risks stay high. We maintain BUY, TP IDR110/sh, supported by improving profitability and a stronger ecosystem outlook.