Tokopedia is the largest e-commerce company in Indonesia, with its headquarters in Jakarta. In May 2021, following a merger with an on-demand multi-service and digital payment platform, Gojek, the company became a subsidiary of a new holding company called GoTo. The company boasts of approximately 100 million active monthly users.
According to reports, TikTok plans to invest $1.5 billion in Tokopedia, acquiring a 75% stake in the company. This investment will aid the integration of TikTok shop into Tokopedia’s existing platform. The deal comes after Indonesia banned social media e-commerce in October, citing concerns about protecting offline retailers and marketplaces from the unfair pricing practices of online merchants, as reported by Incognito Blog.
The partnership between the two companies aims to promote Indonesian goods on their platforms and enhance production and sales strategies. The report also mentions that the deal will be subject to regulations and supervision during the initial phase.
