SPAI Rejects Grab-GoTo Merger Over Monopoly Concerns, Drivers' Earnings Decline

TEMPO.CO, Jakarta - The Indonesian Transport Workers Union (SPAI) has opposed the proposed merger between PT GoTo Gojek Tokopedia Tbk and Grab Indonesia, expressing concerns that it could create a monopoly in the online transportation service market.

SPAI Chairperson Lily Pujiati pointed to Law Number 5 of 1999, which prohibits monopolistic practices and unfair business competition.

"This means that in Indonesia, Grab and GoTo clearly create a monopoly practice by controlling more than 75 percent of the market share for a specific type of service," she said in a written statement on Friday, May 16, 2025.

Referring to data from Euromonitor International, SPAI stated that the merger would result in the combined companies dominating 91 percent of Indonesia’s online transportation market share, with their influence in Southeast Asia potentially reaching 85 percent.

Lily also highlighted the concerns of online motorcycle taxi drivers, online taxis, and couriers about potential earnings suppression in the name of cost efficiency. "An example of the direct losses experienced by drivers can be seen from the previous merger between Gojek and Tokopedia that gave birth to GoTo in 2021," she noted.

She explained that following that merger, incentives for Gojek drivers in delivery services sharply declined.

Previously, drivers earned Rp 30,000 for eight deliveries; after the merger, this amount dropped to Rp8,000. Similarly, the incentive for the 15th delivery fell from Rp100,000 to Rp37,500.

SPAI has called on the Business Competition Supervisory Commission (KPPU) to investigate the planned merger, urging the body to prevent monopolistic practices that could harm both drivers and the public.

"To conduct an investigation into the planned merger between Grab and GoTo, which could lead to monopolistic practices, so that drivers and the public are not disadvantaged," Lily said.

Additionally, SPAI urged the government and the House of Representatives to quickly establish comprehensive legal protections for online motorcycle taxi drivers, online taxis, and couriers through discussions on the Manpower Bill.

"It must be discussed between Commission 9 of the Indonesian House of Representatives and the Ministry of Manpower," she emphasized.

In response, Grab Indonesia denied that the merger plans were based on verified information. "The speculation is not based on verified information, so we cannot respond further," said Tirza Munusamy, Grab Indonesia's Chief of Public Affairs, in a written statement on Thursday, May 15, 2025.

Tirza also addressed concerns about foreign dominance, explaining that Grab Indonesia operates as a Foreign Direct Investment (FDI), a legitimate investment format allowed by the government. She noted that FDI is a common legal structure for international companies investing in Indonesia, contributing to economic growth, technology adoption, and cross-sector innovation.

Meanwhile, GoTo's Corporate Secretary R.A. Koesoemohadiani neither confirmed nor denied the merger rumors but noted the company had received various business cooperation offers.

"There is no agreement between the Company and any party," she stated in a disclosure at the Indonesia Stock Exchange on Thursday, May 8, 2025.

Deswin Nur, Head of Public Relations and Cooperation Bureau of KPPU, recommended that Gojek and Grab consult with the commission before proceeding with any merger. "We hope that the parties are confident that their transactions will not have an impact, or they can consult with the KPPU before the transaction is carried out," he said.

Deswin reiterated that the law prohibits transactions leading to monopolistic practices or unfair competition. So far, the KPPU has not received any official merger notifications from the companies.

He explained that merger notifications must be submitted within 30 days after a transaction is declared effective.

"The transacting parties must conduct a self-assessment and ensure that their transactions do not violate the law," Deswin added.

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