TikTok-Tokopedia Collaboration: Who Stands to Gain?

The Indonesian government monitors the strategic collaboration between TikTok and Tokopedia. Trade Minister Zulkifli Hasan has granted three to four months for TikTok Indonesia and PT GoTo Gojek Tokopedia Tbk (GOTO) to undergo a trial period for their collaboration. "TikTok is not an e-commerce platform; Tokopedia handles its e-commerce aspect and sales. However, given its advanced technology, it requires a trial period," he said on December 12.

Zulkifli stated that following this trial period, the Trade Ministry would audit TikTok and Tokopedia, mainly focusing on the sale of local products. Executive Director of TikTok's E-commerce Stephanie Susilo said the partnership with Tokopedia aligns with its shared vision and mission to advance local micro, small, and medium-sized enterprises (MSMEs). According to her, the collaboration with Tokopedia is an ongoing process. "It's an ongoing process. So, we will continue to support local MSMEs," she said.

TikTok and Tokopedia have entered into a strategic agreement to operate an e-commerce platform together. TikTok is investing US$1.5 billion in Tokopedia. With this investment, TikTok will hold a 75 percent stake in Tokopedia, while GoTo will own the remaining 25 percent. Subsequently, the TikTok Shop platform will be integrated under Tokopedia, and TikTok will have control over Tokopedia. "The in-app shopping service feature on TikTok in Indonesia will be operated and managed by PT Tokopedia," stated TikTok.