According to foreign media reports,TikTokofE-commerce business will collaborate with IndonesiaThe merger of Tokopedia, an e-commerce platform under GoTo Group,Restart with thisTikTok's e-commerce business in Indonesia.

GoTo is the largest internet technology company in Indonesia, with local e-commerce platform Tokopedia and mobile service platform Gojek under its umbrella. Tokopedia is the largest local e-commerce company in Indonesia, with a market share of up to 35%.

Prior to this,TikTok's e-commerce business was once banned by the Indonesian Ministry of Commerce.two thousand and twenty-threeyearOn September 27th, the Indonesian Ministry of Trade issued a statement announcing a ban on e-commerce transactions on social media platforms, citing the need to protect the local offline market and small and medium-sized enterprises.

subsequentlyA TikTok spokesperson stated that this regulation may affect the livelihoods of over 6 million merchants and nearly 7 million related creators on TikTok Shop. Prior to Indonesia's ban, TikTok was already facing bans and censorship in countries such as the United States, Europe, and India.

2023On October 4th, in an email sent by TikTok Shop to Indonesian sellers, TikTok Shop explicitly stated that the Indonesian site was officially closed. At the same time, TikTok Shop also stated that it will strive to find feasible solutions to expand its e-commerce business in the Indonesian market and continue to cooperate with relevant authorities.

The transition occurred atTwo months after TikTok Shop was banned.2023On November 28th, according to Antara National News Agency, Indonesia's Deputy Minister of Trade, Jerry Sambuaga, stated that TikTok can cooperate with any e-commerce platform as long as it complies with Indonesia's regulatory procedures. The reason why TikTok Shop was previously prohibited from operating was because it exceeded TikTok's scope as a social media platform.

According to the official agreement between both parties,After TikTok reaches an e-commerce strategic partnership with GoTo Group Indonesia, TikTok's Indonesian e-commerce business will merge with the group's e-commerce platform Tokopedia. The specific implementation method is to integrate the business of the original Tokopedia and TikTok Shop Indonesia into the new "PT Tokopedia" entity.

Tokopedia will first purchase TikTok Shop's Indonesian business for $340 million, and TikTok will then acquire 75.01% of the new company's shares for $840 million,Expected transactionCompleted in the first quarter of 2024.MergedTokopedia is controlled by TikTok. TikTok also pledged to invest $1.5 billion to provide financial support for future business development,

Regardless of theTikTok or Tokopedia, this strategic collaboration is undoubtedly a win-win situation. Especially with TikTok ultimately controlling Tokopedia, it is evident that TikTok has more say in the Indonesian e-commerce market and has become more proactive.