Jakarta. Grab Indonesia on Thursday dismissed market speculation of a potential $7 billion merger with Indonesian tech giant GoTo Gojek Tokopedia (GOTO), calling the rumors unsubstantiated and lacking any verified basis.

"These merger speculations are not based on verified information, so we are unable to provide any further comment," said Tirza Munusamy, Chief of Public Affairs at Grab Indonesia, in an official statement.

Bloomberg and Reuters reports suggested that Grab had hired legal and financial advisers to facilitate a merger deal with GoTo, with sources indicating the transaction could close as early as the second quarter of 2025. The proposed deal, reportedly valued at around $7 billion (Rp114.8 trillion), would mark one of Southeast Asia’s largest tech consolidations.

While declining to address the speculation directly, Grab said its focus remains on strengthening operations in Indonesia and supporting local economic participation.

“Our priority is to empower small businesses and provide sustainable income opportunities for Indonesians,” Tirza said.

This is not the first time rumors of a merger between Grab and GoTo have surfaced. Similar reports emerged in February 2024, only to be denied by GoTo at the time.

Questions on Foreign Ownership Resurface

The renewed merger chatter also reignited a public debate over Grab’s status as a foreign-dominated entity. In response, the company underscored that it operates in Indonesia as a legally registered foreign investment (PMA) company.

Grab said 99 percent of its workforce in Indonesia consists of local employees. Only one executive-level position is held by a foreign national.

“We believe the future of Indonesia’s digital economy must be led by Indonesians. Grab Indonesia is a collective effort by and for the people of Indonesia,” Tirza said.

GoTo, formed through the 2021 merger of ride-hailing firm Gojek and e-commerce company Tokopedia, reported strong first-quarter results this year. The company posted a 37 percent year-on-year increase in net revenue to Rp4.2 trillion, while narrowing its quarterly loss to Rp276 billion from Rp420 billion a year earlier.

Meanwhile, Grab Holdings Ltd. reported a 17 percent year-on-year revenue increase in Q4 2024 to $764 million, with on-demand gross merchandise value (GMV) climbing 20 percent to $5 billion. The Singapore-based company booked a net profit of $11 million for the quarter and hit an all-time high in adjusted EBITDA at $97 million.