Chief operating officer Hans Patuwo is set to take over as CEO of GoTo, replacing Walujo, following pressure from investors for better stock performance. Despite previous plans for Walujo to remain in charge for years, the co-founders and prominent investors, including SoftBank Group Corp., pushed for a change due to GoTo’s declining value. Patuwo’s appointment, subject to shareholder approval, may also pave the way for a potential merger between GoTo and Singapore’s Grab.
Shares of GoTo saw a 6.3% increase in Jakarta after the announcement, bringing the company’s market value to approximately $5 billion. Grab, on the other hand, has a market capitalization of $20 billion, traded in New York. The move towards appointing Patuwo as CEO could indicate a shift towards operational focus and a revival of discussions for the Grab-GoTo merger, according to analysts at Citigroup Inc.
Patuwo, who has been with the company for over seven years, faces the challenge of steering GoTo amidst a changing landscape heavily influenced by AI technology. Talks of a potential merger with Grab have gained traction following conversations with Indonesia’s government. The country’s sovereign wealth fund, Danantara, is expected to play a role in the possible consolidation of the two companies, potentially addressing monopoly concerns.
In line with the leadership changes, co-founder Andre Soelistyo is appointed to the board of commissioners. This move comes ahead of an extraordinary general meeting on Dec. 17, where shareholders will vote on various matters, including the new leadership structure. Soelistyo, who was instrumental in the Gojek and Tokopedia merger, now takes on a key role in the governance of GoTo.
GoTo’s shareholders are set to make crucial decisions that could shape the company’s future, including the potential merger with Grab and the appointment of Patuwo as CEO. The entry of Danantara, Indonesia’s sovereign wealth fund, into discussions adds a new dimension to the consolidation process. Patuwo’s extensive experience within the company positions him well to navigate the challenges ahead and drive GoTo towards potential growth and success.
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