Commentary: That Gojek and Tokopedia merger should have happened a long time ago

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If two of Indonesia’s most valuable tech companies come together, they can take on bigger rivals. The question is whether this is too late, says ...

SINGAPORE: The union of Gojek and Tokopedia seemed almost inevitable after rumours of an on-off wedding of two of Southeast Asia’s largest ride-hailing companies, namely, Grab and Gojek, was finally called off.

So, a merger of Gojek and Tokopedia is not just a marriage of convenience but an imperative for the two companies. But this union is far from being a done deal. It still needs approval from shareholders.Even if the merger is only exploratory, it marks a major step to reach a deal that would create yet another giant Southeast Asian tech company. On paper, the combination of Gojek and Tokopedia, renamed GoTo, could be worth around US$18 billion.

It would imply the two companies expect to generate significant synergy from the merger. It is not an unreasonable assumption given that both companies count Google and Temasek amongst their shareholders according to news reports. Southeast Asian e-commerce and gaming group Sea's signage is pictured at their office in Singapore, Mar 5, 2021.

 

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