Indonesia’s Business Competition Supervisory Commission (KPPU) has issued a public warning regarding the potential merger between tech giants Grab and GoTo, emphasizing the importance of compliance with national competition laws.

KPPU Chairman M. Fanshurullah Asa addressed growing media speculation over the anticipated merger, which is anticipated to be valued at Rp 114.8 trillion (US$7.1 billion).

He clarified that under Indonesia’s mandatory post-merger notification system, as stipulated in Law No. 5/1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition, the KPPU cannot assess mergers or acquisitions until a formal notification has been filed − no later than 30 days after the transaction becomes effective.

“As long as the Grab-GoTo merger remains speculative, KPPU cannot provide a formal assessment,” Asa said as quoted in a statement on Thursday, May 22, 2025.

“However, the involved parties are welcome to submit a voluntary consultation,” he suggested.

In a proactive move, the KPPU has begun independent research to identify potential competitive impacts and policy adjustment options should the merger materialize. If a formal notification is submitted, KPPU will conduct a comprehensive review under its 2023 regulation, evaluating issues such as market entry barriers, anti-competitive behavior risks, efficiency gains, support for national industrial development, technological innovation, and protection for small and medium enterprises (SMEs).

Asa also asked companies to conduct self-assessment to ensure that their transactions will not pose risks to fair competition.

“If law violation is found, KPPU holds the authority to impose administrative sanctions, including nullifying the merger,” he asserted.