A merger between venture capital firm Northstar Group and U.S.-based investment giant Ares Management Corp. has rekindled scrutiny over previous high-profile investment maneuvers in Indonesia.

Market analyst Yanuar Rizky raised red flags over what he described as an overlooked consequence of Telkom Group’s Rp6.4 trillion (US$392 million) investment into GoTo via its mobile subsidiary, Telkomsel, in 2021.

According to Yanuar, the deal significantly benefited early shareholders, with some reportedly profiting by as much as 275 times their initial stake, a windfall he believes mostly favored foreign stakeholders.

“This means that, post-merger, Northstar’s legacy portfolio, including GoTo and other local assets, is further entangled with American financial interests,” Yanuar told Indonesia Business Post, on Tuesday, June 24, 2025, echoing principles from investigative analysis.

The merger, reported by Bloomberg last week, confirms that Ares Management, a U.S. investment powerhouse managing over US$546 billion in global assets, is absorbing Northstar’s operations, including key investment projects in Indonesia.

Although Northstar’s founders will not be joining Ares, about 20 staff members, including several senior investment professionals, will transition into Ares. This consolidation underscores growing foreign influence in Indonesia’s strategic sectors, including technology and energy.

Ares' institutional shareholders include BlackRock, a global asset management giant that also holds a controlling stake in Grab Holdings, another major regional tech player and GoTo competitor.

He added that the recent public appearances of Danantara’s top executives alongside BlackRock only deepen the impression of a shifting ownership landscape.

Northstar’s merger comes at a time when private equity firms in Southeast Asia face increasing pressure to deliver returns amid limited exit options. According to data from Alternatives.pe, Northstar sold off a portion of its stake in eFishery, an aquaculture tech startup, shortly before formal investigations into the company began.

Compounding the shakeup are the resignations of key Northstar figures, including Sunata Tjiterosampurno, who is set to join Danantara in July, and Melvin Hade, who is launching a new asset management firm in Jakarta. Other executives such as Michelle Irawan and Sreejan Chaudary have also stepped down.

Founded over two decades ago, Northstar has been a prominent backer of Indonesian companies, with a portfolio spanning GoTo, Indosat Ooredoo Hutchison, and eFishery, and managing assets valued at over US$2.6 billion.

However, its merger with Ares signals a strategic pivot one driven in part by the need to secure new capital and maintain operational viability.

Critics argue that such consolidations risk eroding Indonesia's economic sovereignty. With global funds like BlackRock now indirectly linked to pivotal tech platforms in Indonesia, concerns are mounting about control over data, strategic infrastructure, and market dynamics.

“Beneath the surface of corporate restructuring and asset management is a growing trend of capital flight and diminishing local control. This is not just about business it’s about the structural independence of our digital and economic ecosystems,” Yanuar warned.