No Indication of Monopoly on the Gojek and Tokopedia Merger Yet

The Business Competition Supervisory Commission (KPPU) has not received a notification regarding the merger of Gojek and Tokopedia into GoTo which took place two weeks ago (17/5). However, KPPU noted that there was no indication of a monopoly on this corporate action.

KPPU Chairman Kodrat Wibowo suspected that GoTo had not submitted the notification because it was still in the legal process at the Directorate General of General Legal Administration (AHU) of the Ministry of Law and Human Rights (Kemenkumham).

Meanwhile, corporations are required to deliver notification to KPPU no later than 30 days after the completion of the merger or acquisition transaction process. If it is late, business actors are subject to a fine of IDR 1 billion per day with a maximum fine of IDR 25 billion.

However, the deadline was extended to a maximum of 90 days. “This is with a relaxation scheme for handling Covid-19 and restoring the national economy,” said Kodrat, Friday (28/5).

Based on the PP also, KPPU can provide certain requirements to be obeyed and changed by business actors, if it is considered a monopoly. In fact, the commission can cancel the merger, through a case process.

There has not been any Evidence of Monopoly Indication from Goto

The KPPU’s provisional results show that there is no indication of a monopoly on the merger of Gojek and Tokopedia. In terms of e-commerce, for example, there are still competitors such as Shopee, Bukalapak, Lazada, and others.

“For other markets, such as payment and food delivery, we cannot analyze yet, because it requires supporting data and documents related to mergers and notifications,” he said.

A comprehensive analysis can only be carried out after KPPU receives a notification from GoTo. Meanwhile, from the side of sharing rides (ride-hailing) such as taxis and online motorcycle taxis, so far the KPPU has not recorded any indication of monopoly.

This is because Tokopedia and Gojek have different core businesses. Tokopedia is in the e-commerce sector, while Gojek provides on-demand services including ride-hailing. “Except, if the delivery of goods (at Tokopedia) only uses Gojek services. Grab is not allowed,” he said.

However, “it seems unlikely that they would dare to practice such discrimination. Unrealistic and rational.” Grab’s delivery service, GrabExpress, is still available on Tokopedia. It also depends on each shop that chooses the delivery service.

Tokopedia Made it into the Top 100 Retailers in Asia in 2021

Based on the share and market value in this report, this Indonesian-made technology company was able to overtake Apple Inc and Sea Ltd as the parent company of Shopee.

Tokopedia is ranked 26th with a market share and value of USD 11,683 million. Meanwhile, Apple Inc is in the 27th rank of USD 11,278 million and Sea Ltd is in 31st position with a share and market value of USD 10,367 million.

“Tokopedia also occupies the first position of retail players in Indonesia as well as in Southeast Asia,” as quoted from the Euromonitor International report, Friday (28/5/2021).

“E-commerce platforms such as Tokopedia, Shopee and Lazada play a big role in digitizing brands that were previously only engaged in the offline realm,” the statement stated.

Overall, Southeast Asia’s retail value is estimated to be able to record growth of 6.7 percent over the next five years (2021-2025).

Meanwhile, in Indonesia, rank 1-5 in order is occupied by Tokopedia, Sea Ltd (Shopee), Salim Group, PT Sumber Alfaria Trijaya Tbk and Bukalapak.

Meanwhile, Gojek online motorcycle taxi service partners show the logo of the Gojek and Tokopedia merger companies circulating on social media at the passenger shelter at the Sudirman Railway Station, Jakarta, Friday (28/5/2021).

A number of Gojek driver-partners hope that the merger of the two startup companies Gojek and Tokopedia will have a positive impact on partners by increasing bonuses and incentives because the merger has increased the value or valuation of the company.