TikTok invests $1.5 billion to resume its activity in Indonesia

Indonesia, which is one of the largest e-commerce markets for"Tik Tok" Under a deal with "Goto" Owner of the famous local shopping platform "Tokopedia" (Tokopedia).

The two companies explained in a statement that the agreement between them stipulates "Business combination "Tokopedia" And"Tik Tok Shop Indonesia" Within an entity "PT Tokopedia" Currently existing".

You will be"Tik Tok" A controlling interest in this entity that will operate the shopping functions of the network application.

The statement indicated that "Tik Tok" It has committed to investing more than US$1.5 billion in the expanded entity.

He added that "Tik Tok" And"Goto" And"Tokopedia" It will happen "Transforming Indonesia’s e-commerce sector, creating millions of new jobs over the next five years".

And it was "Tokopedia" And platforms like it, among them "lazada" And"Shoppe"has dominated the e-commerce market in Indonesia for years, but the store "Tik Tok Shop" It has gained a significant market share since its launch in 2021.

Indonesia is the second largest market in the world for"Tik Tok" After the United States, where the number of users reaches 125 million, according to the platform.

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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 “merging the businesses of Tokopedia and TikTok Shop Indonesia within the framework of the currently existing PT Tokopedia entity.”

TikTok will have a controlling stake in this entity, which 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.

He added that TikTok, GoTo and Tokopedia will “transform Indonesia’s e-commerce sector, creating millions of new job opportunities over the next five years.”

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

Indonesia is the second largest market in the world for TikTok after the United States, with 125 million users, according to the platform.