Indonesia prominent e-commerce platform, Tokopedia, has undergone a significant transformation as Chinese social media giant TikTok, owned by ByteDance, finalized its acquisition of a 75.01% stake for $840 million. This strategic move comes after a December agreement with Indonesian tech conglomerate GoTo.
Revitalizing TikTok Shop in Indonesia
TikTok acquisition opens the door for the relaunch of its e-commerce service, TikTok Shop, in Indonesia. The resurrection follows Indonesia’s temporary ban on social media-based online shopping in September, a measure enacted to safeguard smaller merchants and user data. Under the deal with GoTo, TikTok Shop’s Indonesian operations will seamlessly integrate into the expanded Tokopedia entity.
GoTo Group CEO Patrick Walujo expressed optimism about the partnership’s potential to benefit Indonesia and its micro, small, and medium enterprises (MSMEs). This collaboration marks a significant step forward for GoTo Group, fostering economic growth and innovation in the region.
In a recent statement, GoTo revealed that it achieved positive adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in the final quarter of 2023, meeting targeted goals. However, specific financial details will be disclosed in March. With diverse business ventures encompassing ride-hailing, delivery, and financial services, GoTo Group foresees improved profitability, hinting at a potential share buyback.
Before the announcement, GoTo shares experienced a positive uptick, closing with a 1.15% increase at 88 rupiah each. This market response underscores the significance of the TikTok-Tokopedia collaboration and its potential to reshape the landscape of e-commerce in Indonesia.
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