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.
