8-12-2023 (JAKARTA) Indonesia’s leading tech company, GoTo (a merger of Gojek and Tokopedia), revealed on Friday that it is currently in discussions with the short video app TikTok regarding a potential e-commerce collaboration in the Southeast Asian nation.
In an official statement, GoTo clarified that no final agreement has been reached at this stage. The ongoing discussions do not involve any takeover plans or the sale of more than 50 per cent of its shares to any party, the company affirmed.
The move comes after Indonesia implemented a ban on online shopping via social media platforms in October, aiming to safeguard smaller merchants and user data. Subsequently, TikTok was compelled to shut down its e-commerce service, TikTok Shop. With 125 million users in the country, TikTok has been exploring potential partnerships to re-enter the market.
In November, Indonesia’s Minister of Small and Medium Enterprises, Teten Masduki, disclosed that TikTok had engaged in talks with several companies, including GoTo, Bukalapak.com, and Blibli, exploring the possibility of collaboration.
Earlier this week, Bloomberg reported that TikTok had reached an agreement to invest in a unit of GoTo, citing sources familiar with the matter.
The e-commerce market in Indonesia is poised for significant growth, with projections estimating it to reach around $160 billion by 2030, up from $62 billion in 2023, according to a report on Southeast Asia’s internet economy by Google, Singapore state investor Temasek Holdings, and consultancy Bain & Co.
