JAKARTA. The management of PT GoTo Gojek Tokopedia Tbk (GOTO) finally responds to the issue of merger with Grab Holdings, which has been circulated for the past month.

R. A. Koeseomohadiani, Corporate Secretary of GOTO, said that the company cannot comment on the widespread rumour. Furthermore, she added that the company was first informed regarding the news from the mass media. “Basically, we cannot comment on said news,” she reasserted.

As informed by IDNFinancials before, GOTO was said to initiate another discussion regarding a merger plan with Grab Holdings. According to the primary source, as quoted by Bloomberg, Grab will the one acquiring GOTO.

The source also told that GOTO has been open to merger possibilities after Patrick Walujo entered the CEO position last year. The corporate action is believed to be able to elevate GOTO and Grab Holdings’ business performance, whilst reducing the losses on both parties due to extensive competition.

On the other hand, several economists believe that the merger of GOTO and Grab Holdings will generate negative impact on competition climate in the industry. One of them is the potential monopoly or oligopoly, should GOTO and Grab Holdings come together as one business entity.

In the meantime, consumers are limited on alternatives of ride-hailing services in Indonesia, moreover with ever-constricting price range. (KR/ZH)