Jakarta, Indonesia – After multiple reports suggesting business talks between TikTok and GoTo in Indonesia, TikTok has announced that is investing a total of US$1.5b investment into GoTo. In it, Tokopedia and TikTok Shop Indonesia’s businesses will be combined under the existing PT Tokopedia entity.

In an official statement, both entities have said that this arrangement will allow both TikTok and GoTo to each serve Indonesian consumers and MSMEs more comprehensively.

Moreover, GoTo will benefit from the growth of the enlarged entity and will remain an ecosystem partner to Tokopedia, through its digital financial services via GoTo Financial and on-demand services via Gojek.

Going forward, TikTok, Tokopedia and GoTo will transform Indonesia’s e-commerce sector, creating millions of new job opportunities over the next five years. 

Some of those planned joint ventures include promotion of Indonesian products on Tokopedia and TikTok’s platforms, building the capacity of Indonesia’s MSMEs through a holistic program focusing on skills development, supporting merchants to sell products online, helping local brands to promote their products in international markets, amongst others.

The transaction, which is expected to close in the first quarter of 2024, is in line with the GoTo Group’s strategy to strengthen its financial and strategic position by growing its total addressable market.

Moreover, a committee under the enlarged entity will be established to facilitate transition and integration, chaired by GoTo Group CEO Patrick Walujo, with support from members of both businesses.

These talks come after TikTok Shop announced the shutdown of its local operations in Indonesia in October 2023 following local orders. The company was forced to close down after the country’s government passed a regulation prohibiting the use of social media for e-commerce transactions.

Indonesia – ByteDance’s TikTok is reportedly in talks to partner with Indonesian technology company GoTo Group to restart its online retail operations in the country, Bloomberg reports.

According to an insider familiar with the matter, the deal may take the form of a joint venture instead of a direct investment. The two companies’ discussion also involved jointly creating a brand-new e-commerce platform.

While looking for several more options, TikTok is reportedly working to invest in GoTo’s e-commerce arm, Tokopedia, to bring its online shop back to the Indonesian market.

These talks come after TikTok Shop announced the shutdown of its local operations in Indonesia in October 2023 in accordance with local orders. The company was forced to close down after the country’s government passed a regulation prohibiting the use of social media for e-commerce transactions.

It is worth mentioning that the new regulations were placed with the aim of protecting the interests of micro, small, and medium enterprises (MSME’s). However, the shutdown also meant a loss of livelihood for about 6 million social sellers and 7 million affiliates on TikTok Shop alone.

In an previous exclusive interview with MARKETECH APAC, industry leaders in Indonesia also shared their insights on the future of social commerce in the country after the regulations were set in place.

Rolly Pane, managing director for Indonesia at Clozette, shared that “Social commerce can still be done, promoting products in social and driving people to e-commerce. The only difference is that it will not happen in one ecosystem or app. It just has to cross over apps.”

Pane noted that while the regulation would cause a significant drop in e-commerce transactions originating from social media posts and engagements, brands can still implement alternative strategies to make their social commerce strategies stand out.

Meanwhile, Anish Daryani, founder and president director at M&C Saatchi Indonesia, also believed that social commerce will continue to move forward in Indonesia, adding that there is more growth for the Indonesian social commerce scene compared to more mature markets like China’s.

“Though this regulation would bring social commerce to a stop, there is no stopping commerce from becoming more social,” Daryani told MARKETECH APAC.

Jakarta, Indonesia – Telkomsel Ekosistem Digital, a subsidiary of Indonesian telco Telkomsel has announced a joint venture with Aplikasi Multimedia Anak Bangsa (AMAB), a subsidiary of GoTo. The venture, called Majamojo, will build on the ongoing collaboration between the two local champions, which has already seen the introduction of a number of well-received mobile game promotions in Indonesia.

Majamojo will focus on mobile game development in Indonesia and Southeast Asia. It will look to form partnerships with third-party game developers, while leveraging Telkomsel Ekosistem Digital and GoTo’s strengths, including their digital capabilities, technology assets, and wide-reaching ecosystems.

This is in part of the joint venture’s objective of being the largest gaming publisher in Indonesia, as well as expected to strengthen Indonesia’s gaming industry, and encourage the development of more homegrown digital talent. 

Its efforts will also support Indonesia’s digital transformation and bring the benefits of the digital economy to more people throughout the country.

Andi Kristianto, CEO at Telkomsel Ekosistem Digital, said that they are optimistic about the role Majamojo can play, contributing to the development of the gaming industry and the digital ecosystem in Indonesia and Southeast Asia.

“Majamojo further strengthens Telkomsel Ekosistem Digital’s business, following the incorporation of PT Kuncie Pintar Nusantara (Kuncie) and PT Fita Sehat Nusantara (Fita) into its portfolio. Our goal is to maximise the advantages of Telkomsel’s assets and capabilities to grow Majamojo’s position in the gaming ecosystem, complementing what Dunia Games has covered so far,” Kristianto said.

Meanwhile, Reggy Susanto, head of strategic partnerships at GoTo, commented that by expanding their collaboration with Telkomsel, they will make it even easier for everyone to access digital products and services from GoTo and Telkomsel, so that they can better meet the needs of the growing mobile-first market in Indonesia.

Telkomsel Ekosistem Digital will be the majority shareholder of Mamamojo, with the remaining shares held by AMAB. To accelerate Majamojo’s business strategy, Jungwon Hahn will lead the joint venture as president director and M. Dody Darmawan as finance director.

Hahn explained, “I am excited to lead Mamamojo, which will focus on publishing games and developing the gaming industry locally and regionally. Our mission is to serve gamers with dedication and become a force to be reckoned with in Southeast Asia. We also aim for Majamojo to become a leading company in Indonesia that will strengthen the gaming ecosystem in Indonesia and beyond.”