Indonesian Startups Gojek-Tokopedia Merge... IT Giant Emerges

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Indonesia's largest ride-sharing company Gojek and e-commerce company Tokopedia are merging. This will create Indonesia's largest internet giant.

On the 17th (local time), according to major foreign media, the two companies announced that they will establish a new holding company called 'GoTo Group' through the merger. The merged entity will oversee internet businesses ranging from ride-sharing to fintech and online shopping.

The companies stated, "With the support of shareholders such as Google and Alibaba Group, we have established a joint holding company called GoTo Group," adding, "It will generate the best synergy effects."

Gojek co-CEO Andre Soelistyo will serve as CEO of the joint company GoTo Group, and Tokopedia CEO Patrick Cao will serve as GoTo's representative.

Gojek's other CEO Kevin Aluwi and Tokopedia's CEO William Tanuwijaya will continue to maintain their respective positions.

Additionally, Soelistyo will lead 'GoTo Finance,' the payment and financial services including GoPay.

Gojek's corporate value is estimated at $10.5 billion (approximately 11.7 trillion KRW), and Tokopedia's corporate value is estimated at $7.5 billion (approximately 8.3 trillion KRW).

The two companies plan to go public on the Indonesian and U.S. stock exchanges after the merger is completed.