TikTok invests $1.5 billion to resume its activity in Indonesia

2023-12-11 22:30:45

TikTok announced an investment of $1.5 billion in Goto, in a deal that is expected to allow the short video platform, owned by a Chinese company, to restart its online store in Indonesia.

Last September, Jakarta banned sales on social media, in order to protect small companies whose activity was declining in favor of giant e-commerce companies, which forced TikTok to close its online store in October.

The store is scheduled to resume its activity in Indonesia, which is one of the largest e-commerce markets for TikTok, under a deal with Goto, owner of the famous local shopping platform Tokopedia.

The two companies explained, in a statement, that the agreement between them stipulates the merger of the businesses of “Tokopedia” and “Tik Tok Shop Indonesia” within the framework of the currently existing “PT Tokopedia” entity.

TikTok will have a controlling stake in the entity that will operate the shopping functions in the network application.

The statement indicated that TikTok has committed to investing more than $1.5 billion in the expanded entity.

Tokopedia and platforms like it, including Lazada and Shopee, have dominated the e-commerce market in Indonesia for years, but the TikTok Shop has gained a large share of the market since its launch in 2021.

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