An update! Indonesian tech firm GoTo and short-form video app TikTok just announced the official merger of Tokopedia and TikTok Shop Indonesia.

• Both businesses will now be under PT Tokopedia, in which TikTok owns a controlling stake.  
• PT Tokopedia will manage and operate the shopping features of TikTok Indonesia.

Recap. The two firms soft-launched the plan late last year when TikTok said it would invest over $1.5B into PT Tokopedia.

For context. In September 2023, the Indonesian government banned e-commerce transactions on social media to protect offline sellers and physical marketplaces.

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👠 All together

The Indonesian government said in December that they would audit the trial e-commerce tie-up after a three to four-month trial period to see if it would positively impact small merchants. 

• Tokopedia and TikTok kicked off their partnership last year with the 12.12 Buy Local campaign, where they supported small merchants, increasing their sales by 125%.

Building digital talent. The two firms also launched a digital talent development center at a local university to facilitate internships and employee exchange programs.

• Participants will be assigned to TikTok’s various global offices. 

Helping SMEs. Oh, and Tokopedia and TikTok also started an SME empowerment program that supports local batik entrepreneurs with advanced production tools, trend insights, inventory management, and more. 

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📆 What’s next? 

According to a press statement, the tie-up between Tokopedia and TikTok Shop “has been making good progress and is set to be completed within the trial period”.