World · World News Bureau
GoTo shares fall after Indonesia bourse lifts minimum price threshold
Shares in Indonesian ride-hailing and e-commerce giant GoTo declined after the country's stock exchange eliminated the 50 rupiah price floor that had previously supported its stock. The move reflects changing market conditions for the troubled tech company.
LSN World News ·
GoTo Group experienced a sharp sell-off on the Indonesia Stock Exchange following the removal of the minimum price threshold that had underpinned its shares. The 50 rupiah price floor, a regulatory mechanism designed to prevent excessive declines, was eliminated by the bourse, exposing the company's stock to unrestricted downward pressure.
The Jakarta-based company, which merged ride-hailing service Gojek with e-commerce platform Tokopedia in 2021, has faced persistent challenges since its initial public offering. The stock removal of the price floor signals that the exchange's regulatory body believes the company no longer requires such protection, a significant development for the once-high-flying tech firm.
The decision underscores GoTo's struggles to achieve profitability and investor confidence since its combination. The company has undertaken multiple restructuring efforts and cost-cutting measures to return to profitability, but its share price has remained under pressure. The elimination of the price floor removes a final cushion against further declines.
Indonesia's tech sector has faced broader headwinds as companies confront macroeconomic challenges and competition pressures. The GoTo development reflects wider struggles among Southeast Asian technology firms to deliver on early market expectations and achieve sustainable financial returns.