The Attorney General’s Office (AGO) has launched an investigation into state-owned telecommunications giant PT Telkom Indonesia’s (TLKM) investment in tech firm PT GoTo Gojek Tokopedia (GOTO), a legal move that adds fresh scrutiny to one of the country’s most high-profile digital sector tie-ups.

AGO spokesman Anang Supriatna confirmed the probe on Tuesday, November 11, 2025, saying the case was still at the preliminary stage.

“Yes, [it concerns Telkom’s investment in GOTO]. It is still under investigation,” Anang told reporters. “We are still collecting information to determine whether there is any indication of a criminal act. The process remains confidential.”

The AGO has yet to disclose details regarding the scope of the investigation or which parties have been questioned.

Telkom, through its subsidiary Telkomsel, first invested in Gojek (prior to its merger with Tokopedia) in November 2020, acquiring US$150 million (Rp2.1 trillion) worth of zero-coupon convertible bonds. Following the Gojek–Tokopedia merger in May 2021, Telkomsel converted the bonds into equity, buying additional shares worth US$300 million (Rp4.29 trillion).

After GOTO’s stock split in October 2021, Telkomsel held 23.72 billion shares valued at Rp375 per share, resulting in an unrealized gain of Rp2.49 trillion by the end of that year.

However, when GOTO went public in April 2022, its share price dropped sharply to around Rp91, forcing Telkomsel to record unrealized losses of Rp6 trillion by the end of 2022.

The investment, initially touted as a strategic partnership between Indonesia’s largest telecom operator and its leading digital platform, has since drawn public criticism amid questions over due diligence, valuation, and risk management.

The probe comes as GoTo faces mounting shareholder pressure and intensifying market rumors about a potential merger with regional rival Grab Holdings Ltd.

Reports from Bloomberg earlier this week suggested that several major shareholders including SoftBank Group Corp., Provident Capital Partners, and Peak XV had signed a memo requesting an extraordinary general meeting (EGM) to vote on replacing CEO Patrick Walujo, who has led the company since 2023.

Sources familiar with the matter said some investors viewed Walujo as opposing a possible Grab takeover, while GOTO’s market value has dropped by more than 40 percent under his tenure.

In a statement to the Indonesia Stock Exchange (IDX) on Wednesday, November 12, 2025, GOTO corporate secretary RA Koesoemohadiani confirmed that the EGM scheduled for November 25 is part of “normal corporate governance” and not linked to any merger or restructuring plan.

“The EGM is part of good corporate governance and should not raise concern,” Koesoemohadiani said.

“The management remains fully committed to acting professionally and prioritizing the interests of GOTO and its stakeholders,” she added.

GoTo denies merger, buyout, and escrow fund claims

Responding to widespread market speculation, GOTO denied reports linking it to a US$300 million escrow fund in Singapore allegedly set aside for a strategic transaction with Grab or a buyout of Telkomsel’s shares.

“The information circulating about an escrow fund and Grab transaction is not true,” Koesoemohadiani said, adding that no agreement or timeline for a merger has been made with Grab or Indonesia’s investment management agency Danantara, another firm mentioned in the rumors.

She emphasized that the company’s focus remains on executing its long-term business strategy and delivering sustainable value to shareholders.

The AGO’s investigation could have broader implications for state-owned enterprises (SOEs) investing in private digital ventures, particularly after several high-profile losses in the tech sector have sparked calls for tighter oversight.

Neither Telkom nor Telkomsel has publicly commented on the AGO probe.