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Indonesia’s GoTo to sell stake in retailer Alfamart to focus on profitability

An Alfamart branch in Indonesia.

Indonesia’s PT GoTo Gojek Tokopedia has sold its stake in local retailer Alfamart worth US$96.03 million to focus on profitability.

GoTo shares are trading at record-low levels.

After pre-IPO owners elected to participate in a secondary offering, shares fell by almost 55 percent in the last two weeks, wiping out almost $8.8 billion in market value.

Gojek, a leader in taxi-hailing and payments, and Tokopedia, a leading name in online shopping, have combined to form GoTo. GoTo has lost more than $23 billion in market value since coming public in April, and its current share price of $0.006 is 72 percent less than its initial public offering price of $0.022.

GoTo, which reported a smaller deficit in the third quarter, intends to put profitability first, explore selling non-core assets and investments, and refrain from making any "new investments that do not contribute to the acceleration of profitability."

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