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Indonesia’s ride-hailing company GoTo is replacing its chief executive, paving the way for a potential merger with its rival Grab that would create a south-east Asian tech super app.
Patrick Walujo will step down after more than two years in the position, the company said on Monday. GoTo had previously said Walujo, who took the reins in June 2023, would stay in the role until 2029.
Walujo was perceived by some shareholders as resistant to a deal with Grab, GoTo’s largest rival with which the Indonesian company has held on-off merger talks for years, according to people familiar with the situation.
Shareholders had been putting pressure on GoTo to finalise a deal as it confronts stiff competition. The company’s share price has fallen more than 80 per cent since its initial public offering in 2022.
The combined entity would control 90 per cent of Indonesia’s ride-hailing and food delivery market, creating a super app in south-east Asia’s largest economy with a market value of more than $24bn.
Walujo is set to be replaced by Hans Patuwo, the group’s chief operating officer, though the appointment will be subject to approval at an extraordinary shareholders meeting on December 17.
“This nomination and transition are part of a rigorous succession process prepared by the board of directors, reflecting the company’s commitment to ensuring stability, strategic continuity and operational excellence,” said GoTo.
GoTo shareholders including SoftBank had sent a memo to the board seeking the removal of Walujo at the next extraordinary meeting, citing the poor share price performance. SoftBank, which owns shares in Grab, has been advocating for a merger, said the people with knowledge of the situation.
In an interview with the Financial Times in March, Walujo said he was open to a merger with Grab but that the structure would need to be considered.
Under Walujo, GoTo — which runs the Gojek ride-hailing service and is part owner of Indonesian ecommerce platform Tokopedia along with China’s ByteDance — posted its first-ever annual adjusted profit of Rp386bn ($23mn) in 2024.
The possibility of an agreement with Grab has increased in recent weeks after the Indonesian government said it was discussing a deal between the two companies.
The companies have offered Indonesia’s sovereign wealth fund Danantara a golden share and a minority stake in the combined entity in an attempt to get government approval, the FT reported this month.
“We believe the [chief executive] transition could signal a pivot towards operational focus and revive the long-stalled proposed Grab-GoTo merger,” Citigroup analysts said in a research note.
“While execution risks remain, we believe the management restructuring would improve the likelihood of regulatory approval for a merger.”
The analysts said government sentiment towards a possible merger “appears increasingly supportive”. Danantara’s stake would serve as “both a symbolic and structural safeguard of national interest”, they said.
