TikTok acquires stake in Tokopedia, reshapes Indonesian e-commerce

Feb. 1 - According to recently disclosed deal developments, Indonesian tech leader GoTo has announced globally that TikTok has satisfactorily completed the acquisition publicized in December last year, with specific details of TikTok contributing $840 million to acquire a 75.01% stake in GoTo's e-commerce business, Tokopedia.

Upon completion of this acquisition, TikTok Shop's operations in Indonesia will be fully merged with Tokopedia. The newly merged entity, PT Tokopedia, will be controlled by TikTok, and TikTok has also committed to investing more than $1.5 billion in PT Tokopedia in the future to support its long-term growth.

Patrick Walujo, GoTo's CEO, recognized the partnership, "The successful completion of this partnership with TikTok will be of substantial benefit to us in Indonesia as well as to local small and micro businesses."

According to ITBEAR, TikTok temporarily withdrew from the Indonesian e-commerce market in response to local policies, but on December 12 last year, TikTok's e-commerce business returned to the "Indonesia Online Shopping Day". Deputy Minister of Trade Jerry Sambuaga has also made it clear that as long as TikTok complies with Indonesian regulations and procedures, it has the right to cooperate with any e-commerce platform of its choice.

However, it is interesting to note that in late September 2023, Zulkifli Hasan, Indonesia's Minister of Trade, made a new argument that "social media and e-commerce should be separated so as to ensure that the algorithms are not completely manipulated, thus preventing personal data from being used commercially. " This viewpoint may have an impact on the future collaboration between TikTok and GoTo.

Sources of information:ITBEAR Technology Information