According to Financial Times News, Indonesia’s GoTo is replacing CEO Patrick Walujo after just over two years in the role, paving the way for a potential merger with rival Grab that would create a Southeast Asian super app worth over $24 billion. Walujo was perceived by shareholders as resistant to a deal with Grab, despite the companies having held on-off merger talks for years. The leadership change comes as GoTo’s share price has plummeted more than 80% since its 2022 IPO, with shareholders including SoftBank pushing for a merger to address stiff competition. The combined entity would control 90% of Indonesia’s ride-hailing and food delivery market. Hans Patuwo, the company’s chief operating officer, is set to replace Walujo pending approval at a December 17 shareholders meeting.
The real story behind the CEO swap
Let’s be honest here – this isn’t your typical succession planning. When a CEO who was supposed to stay until 2029 gets pushed out after two years, there’s clearly more going on. The memo from SoftBank and other shareholders demanding Walujo’s removal tells you everything you need to know. This is a boardroom battle where shareholders are tired of waiting for profitability and see consolidation as the only way out.
What’s fascinating is how transparent the power play has become. SoftBank, which owns stakes in both companies, has been openly advocating for this merger. They’re essentially playing matchmaker between their own portfolio companies. And when your largest investor wants a deal to happen, resistance becomes career-limiting. Walujo’s public statements about being “open” to a merger apparently weren’t convincing enough for shareholders who wanted full commitment.
The government’s golden share
Here’s where things get really interesting. The companies have reportedly offered Indonesia’s sovereign wealth fund, Danantara, a golden share and minority stake in the combined entity. That’s not just smart business – that’s essential survival strategy in Southeast Asia’s regulatory environment.
Think about it: a merger creating a company with 90% market share in ride-hailing and food delivery would attract immediate antitrust scrutiny anywhere. But by bringing the government in as a stakeholder, they’re essentially buying regulatory insurance. The golden share gives Indonesia veto power over key decisions, which addresses national interest concerns. It’s a brilliant move, but also raises questions about how much independence this merged entity would really have.
Why this might still fail
Let’s not get ahead of ourselves though. Mergers of this scale in Southeast Asia have a pretty spotty track record. Remember how many times Grab and GoTo have danced around this idea over the years? There’s a reason it hasn’t happened yet.
Integration would be an absolute nightmare. You’re talking about combining two massive tech platforms with different cultures, different tech stacks, and overlapping operations across multiple countries. And let’s not forget the human cost – layoffs would be inevitable as they eliminate redundant roles. The Citi analysts mentioned execution risks, and that might be the understatement of the year.
Plus, there’s the timing. GoTo just posted its first ever annual adjusted profit of $23 million under Walujo. So they’re finally turning profitable, and now they’re potentially throwing that momentum into a complex merger? That seems… risky.
What this means for the region
If this merger actually happens, it would fundamentally reshape Southeast Asia’s tech landscape. We’d be looking at a dominant player controlling the digital daily lives of millions of Indonesians. The super app model would get its ultimate test case in one of the world’s fastest-growing digital economies.
But dominance comes with responsibility – and scrutiny. Regulators will be watching every move, and competitors will be looking for any opening. The pressure to deliver shareholder value while maintaining that 90% market share would be immense. Basically, they’d become too big to fail, but also too big to manage easily.
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So will this merger finally happen? The CEO swap suggests it’s more likely than ever. But in Southeast Asia’s volatile tech scene, I’ve learned to never count my unicorns until they’ve actually merged.
