Indonesia Government Backs Planned Merger of Grab and GoTo, Sources Say 

The Indonesian government fully backs a possible merger between ride-hailing and food delivery firm GoTo (GOTO.JK), and Singapore-based rival Grab after initially opposing the deal, two sources with knowledge of the matter said on Wednesday. 

State investment fund Danantara Indonesia was also in talks to take a "golden share" in the combined entity, the sources told Reuters. A golden share typically gives its holder veto rights over key decisions, even if it owns only a small stake. 

Jakarta had opposed the planned deal and sought guarantees of better fees and bonuses for drivers, Reuters reported in June. 

The two sources said Grab (GRAB.O) Chief Executive Anthony Tan recently met President Prabowo Subianto to lobby for the transaction. 

The government and Danantara did not respond to requests for comment. 

Grab declined to comment on the meeting and the planned deal. 

A presidential spokesperson said last Friday that the government was discussing a possible merger or acquisition involving GoTo and Grab. 

GoTo said earlier on Wednesday that it has consistently backed government policies that will benefit driver-partners and merchants. This includes "if it's achieved through a merger, acquisition, or any other strategic corporate action." 

A merger would reshape Southeast Asia's largest ride-hailing and food delivery market, where GoTo's Gojek and Grab have dominated for years. 

A combined entity would hold a market share of over 91% in Indonesia, according to data analytics company Euromonitor International. 

But regulatory hurdles remain, including antitrust scrutiny and conditions to protect driver income, sources previously told Reuters. 

Source: Reuters 

Indonesia to Resume Shrimp Exports to the US After Cs-137 Contamination Scare 

The Maritime Affairs and Fisheries Ministry is preparing to resume large-scale exports of shrimp to the United States this month, after concerns over radioactive contamination in August temporarily disrupted shipments. 

As of this week, seven containers carrying 106 tonnes of shrimp worth USD 1.22 million have passed inspection under the Yellow List procedures of the US Food and Drug Administration (FDA), clearing the way for renewed trade. 

The government aims to export up to 200 containers of Indonesian shrimp in the near future. 

“The containers we released starting October 31 have all been certified by the [maritime affairs ministry] and confirmed free from radioactive contamination,” Ishartini, who heads the ministry’s Fishery Product Quality and Safety Agency, told a press conference on Thursday in Jakarta. 

The cleared containers are bound for several major US ports, including those of New York, Los Angeles, Miami, and Jacksonville. 

Ishartini added that the ministry was continuing to enforce strict monitoring at shrimp processing facilities, and that over 100 containers were still awaiting laboratory test results from the National Research and Innovation Agency (BRIN). 

She also expressed confidence that shrimp, one of the country’s top export earners, would soon regain strong footing in the US market. 

“The US remains our biggest destination for shrimp exports. Once this hurdle is cleared, it will help unlock access to other international markets as well,” she said. 

The ministry expects the resumption of shrimp exports to help reach this year’s USD 6.25 billion fisheries export target. 

In August, the FDA detected traces of the radioactive substance cesium-137 (Cs-137) in a container linked to a processing facility belonging to PT Bahari Makmur Sejati (BMS) in Cikande district, Serang, Banten. 

Subsequent tracing led investigators to a scrap metal plant roughly 2 kilometers away operated by PT Peter Metal Technology, which is suspected of improper storage of contaminated materials. 

Nearly 100 residents in the district have been evacuated from their homes to make way for the decontamination process at the plant, which was still underway as of last week. 

Despite the incident, the maritime affairs ministry maintains that the volume of shrimp exports has continued to grow, reflecting sustained global confidence in the quality and safety of Indonesia’s seafood products. 

“If we look at the data, our shrimp exports have actually continued to increase,” business empowerment director Catur Sarwanto said during the ministry’s press conference on Thursday. 

From January to September, the country’s fisheries exports totaled USD 4.52 billion, of which USD 1.39 billion came from shrimp as the sector’s top commodity. 

The US market accounted for 63.1% of Indonesian shrimp exports. Shipments to the country rose 16.3% year-on-year over the first nine months of the year, growing 16.6% month-over-month in September alone. 

“Shrimp exports continued to rise through September. This shows that despite the recent situation, we were able to recover quickly, as evidenced by the increase in exports up to the third quarter,” said Catur. 

Last week, maritime affairs minister Sakti Wahyu Trenggono acknowledged that the Cs-137 contamination incident had temporarily disrupted US-bound shrimp exports. 

“Exports were halted for a while, which caused some shipments to pile up,” Trenggono said on October 28 in Jakarta, as quoted by Detik.com. 

“We first had to ensure that all products were safe, especially since our shrimp have a strong reputation in the US market,” he said. 

Source: Jakarta Post 

Toyota Eyes Bioethanol Investment to Back Indonesia's E10 Policy

Japan's automotive giant Toyota Motor Corporation has expressed interest in supporting Indonesia's 10-percent ethanol fuel blend (E10) policy by investing in bioethanol production, an official said. 

In a statement on Monday, Deputy Minister of Investment and Downstreaming Todotua Pasaribu said Indonesia's annual fuel demand exceeds 40 million kiloliters, with around 4 million kiloliters of bioethanol needed for the 2027 launch of the E10 policy. 

"To capitalize on the momentum, Indonesia must prepare supporting facilities now. This is the opportunity Toyota seeks to seize," he remarked, adding that the company already produces bioethanol-compatible vehicles for various countries. 

The investment opportunity was discussed during Pasaribu's meeting with Toyota Motor’s Asia Regional CEO Masahiko Maeda on November 7. 

Pasaribu said the plan aligns with President Prabowo Subianto's directives to achieve energy self-sufficiency, promote a green economy, and enhance the added value of natural resources through downstreaming. 

"We see vast potential for cooperation with Toyota in positioning Indonesia as a regional hub for bioethanol production," he stated. 

He also mentioned his visit to the Research Association of Biomass Innovation for Next Generation Automobile Fuels (RABIT) facility in Fukushima, where Toyota and RABIT are developing second-generation bioethanol using non-food biomass. 

"RABIT’s technology can convert various types of agricultural waste into bioethanol," Pasaribu said, emphasizing Indonesia's abundant potential feedstock resources. 

He added that Toyota plans to conduct a joint on-site review with Indonesia's state-owned energy firm Pertamina in Lampung, which the government envisions as a future bioethanol production hub. 

"The target is to establish a joint venture by 2026," he said. 

According to Pasaribu, the plan includes developing a facility capable of producing 60,000 kiloliters of bioethanol annually, with an investment value of IDR 2.5 trillion (around USD 150 million) to support the E10 policy. 

He expressed confidence that the investment would help Indonesia meet domestic demand and open new export opportunities. 

Source: Antara News