Tiktok plans to inject funds of more than IDR 23.38 trillion in an effort to take over the majority stake in Tokopedia.
1. Tiktok Investment in Tokopedia and Takeover of Majority Shares: Tiktok, a Chinese technology company, plans to invest more than 1.5 billion US dollars or around IDR 23.38 trillion in the long term into Tokopedia.
Apart from that, Tiktok will also take over the majority stake in Tokopedia, creating a strategic partnership between the two.
2. Partnership Formation and E-commerce Business Merger: GoTo, as the main shareholder of Tokopedia, initiated a strategic partnership plan with Tiktok through PT Tokopedia.
This initiative began with prior consultation with the government. Their first campaign, namely Buy Local on December 12 2023, will combine the Tokopedia and Tiktok Shop Indonesia businesses under the Tokopedia entity.
3. Impact on MSMEs and E-commerce Competition in Indonesia: The agreement between GoTo, Tokopedia and Tiktok is committed to providing broader benefits for Micro, Small and Medium Enterprises (MSMEs) in Indonesia. With more than 90 percent of merchant partners being MSMEs, they hope to drive economic growth and create millions of new jobs. The analysis states
that e-commerce competition in Indonesia will experience significant changes, reshaping the competitive landscape with the possibility of Tiktok having operational control over Tokopedia.
Source: https://komp.as/TiktokdanTokopedia_
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