Northstar–Ares merger triggers concerns over foreign grip on Indonesia’s strategic assets

Published: 2025-06-25 00:10:07 ET ARES

Published on 06/25/2025 at 00:10

The recent merger between Northstar Group and US-based investment giant Ares Management has reignited concerns over the growing foreign influence in Indonesia’s key economic sectors, Indonesia Business Post reports. Market analyst Yanuar Rizky pointed specifically to Telkomsel’s IDR6.4 trillion ($392mn) investment in GoTo in 2021, which he claims disproportionately benefited early-stage investors, many of whom were foreign, earning returns up to 275 times their original stake.

“This merger means Northstar’s legacy Indonesian assets, including GoTo, are now more tightly intertwined with American capital interests,” Yanuar told Indonesia Business Post on June 24. The consolidation, reported last week by Bloomberg, confirms that Ares, an investment powerhouse managing over $546bn, will absorb Northstar’s team and portfolio.

Although Northstar founders won’t join Ares, around 20 team members, including senior investment staff, are transitioning. Ares’ major shareholders include BlackRock, which also holds a controlling interest in GoTo rival Grab, further intensifying scrutiny over Indonesia’s digital and financial independence.

Adding to the perceived concentration of foreign capital, Yanuar pointed to the recent joint appearances of Danantara executives with BlackRock, suggesting deepening ties between US finance and Indonesian assets. Northstar’s partial divestment from aquaculture startup eFishery, just before investigations into the firm surfaced, has also drawn suspicion.

Internal shakeups have accelerated since the merger. Key executives including Sunata Tjiterosampurno (joining Danantara in July), Melvin Hade (founding a new Jakarta-based asset firm), and others like Michelle Irawan and Sreejan Chaudary have exited the firm.

Founded over two decades ago, Northstar was once among Indonesia’s most prominent private equity players with a portfolio spanning GoTo, Indosat Ooredoo Hutchison, and eFishery. But the Ares deal signals a pivot toward larger international capital pools amid a tough regional climate for exits and returns.

Critics argue the merger is more than financial restructuring, it reflects a shift in control. “This isn’t just about investment strategy. It’s a slow erosion of Indonesia’s digital and economic sovereignty,” Yanuar warned, raising red flags over foreign control of data infrastructure, market dynamics, and capital flows.