Local and regional newswires, including Tempo are reporting that PT GoTo Gojek Tokopedia (GoTo) announced its partnership with TikTok on Monday (11/12/23,) where Tokopedia and TikTok Shop Indonesia will merge under PT Tokopedia. TikTok also agreed to invest USD 1.5-billion in GoTo.
“TikTok will invest more than USD 1.5-billion, as a long-term commitment to support the operations of Tokopedia, without further dilution on GoTo’s ownership of Tokopedia,” announced GoTo, who hope the transaction will be finished in Q1/ 2024. The company stated this measure is in line with GoTo Group’s step to strengthen its financial position and its strategy to expand its total addressable market.
Tempo report that to ensure PT Tokopedia’s sustainability in pushing national digital economy development, the company will form a committee to facilitate the transition, headed by Patrick Walujo.
TikTok will take control over PT Tokopedia, while the retail feature in TikTok Indonesia will be operated by PT Tokopedia. TikTok will become a partner to Tokopedia, including expanding its market with digital financial services through GoTo Financial and on-demand services from Gojek, say Tempo.
According to GoTo, this partnership will be profitable for the company. GoTo will also receive the profit from Tokopedia following its growth. The company is optimistic that the partnership will strengthen the development of Indonesia’s digital economy, empower MSMEs, and expand their markets.
TikTok, Tokopedia, and GoTo Group claimed to have committed to giving bigger benefits to national MSMEs in Indonesia through their e-commerce platforms. The company also stated that it will push to create millions of new employment opportunities for the next five years, according to Tempo.