TikTok Invests $1.5B in Indonesia, Partners With GoTo for E-Commerce

TikTok, the popular short video app owned by China’s ByteDance, announced on Monday that it will invest $1.5 billion in Indonesia over the next three years, as part of its expansion plan in Southeast Asia.

The investment will be used to support the development of TikTok’s e-commerce platform, TikTok Shop, which allows users to buy and sell products through the app. TikTok also said it has signed a strategic partnership with GoTo, Indonesia’s largest online marketplace, to integrate their services and offer more choices to consumers and merchants.

TikTok CEO Shou Zi Chew said in a statement that Indonesia is one of TikTok’s most important markets, with more than 125 million monthly active users and 6 million sellers on TikTok Shop. He added that the investment and partnership reflect TikTok’s commitment to empowering local communities and fostering the growth of the digital economy in the region.

The Biggest Economy in Southeast Asia

Indonesia is the biggest economy in Southeast Asia, with a population of 278 million, half of whom are under 30. The country’s e-commerce sector is expected to grow from $52 billion in 2021 to $330 billion by 2030, according to a study by consultancy Bain & Co and GoTo backers Alphabet Inc and Temasek Holdings Pte Ltd¹.

Keep Reading

TikTok faces stiff competition in the e-commerce space from established players such as Sea’s Shopee, Alibaba’s Lazada and GoTo’s Tokopedia, which have larger market shares and loyal customer bases. TikTok facilitated $4.4 billion of transactions across Southeast Asia last year, up from $600 million in 2021, but still far behind Shopee’s $48 billion of regional merchandise sales in 2022².

TikTok’s expansion in Indonesia also comes amid increasing regulatory scrutiny over its data security and content moderation policies. The app has been banned or restricted in some countries, including the US, India and Pakistan, over concerns that it could be used by the Chinese government to spy on users or spread propaganda. TikTok has repeatedly denied these allegations and said it operates independently from ByteDance.

In 2018, Indonesia briefly banned TikTok for posts that contained \”pornography, inappropriate content and blasphemy\”³. The app was later reinstated after it agreed to remove the offending content and cooperate with the authorities. TikTok said it has invested in local content moderation teams and technology to ensure compliance with local laws and regulations.

TikTok said it will continue to work with the Indonesian government and other stakeholders to support the development of the creative industry and the digital ecosystem in the country. It also said it will launch more initiatives to provide training, education and opportunities for local creators, entrepreneurs and small businesses.

Tags: Tiktok Shop
Jasmine C.

Mabuhay! An upcoming Newswriter for the Asian Affairs from the Pearl of the Orient - Philippines. Avid follower of celebrity gossips, fashion news. I got into writing so that my fellow Kababayan will be constantly updated with the latest news.

Recent Posts

Vietnam International Defense Expo 2024

The 2024 Vietnam International Defense Expo was inaugurated by the Prime Minister Pham Minh Chinh on December 19, 2024 and…

December 22, 2024

Shooting concludes: Stranger Things 5 to release on Netflix in 2025

Created by the Duffer Brothers, Stranger Things is one of the most popular sci-fi horror series globally. It is set…

December 21, 2024

China’s Hypersonic Expansion in Asia Raises Alarms for India

According to the US Department of Defense, China has now produced the most sophisticated supply of hypersonic weapons in the…

December 21, 2024

Melaka International Halal Festival 2024

The Melaka International Halal Festival 2024 aims to turn the city as the prime center of the Halal products and…

December 21, 2024

Chunichi Dragons Renews the Contract of Hiroto Takahashi with Annual Salary of 120 million yen

On Saturday, the stalwart of Chunichi Dragons Pitcher, Hiroto Takahashi attended the negotiation for his contract renewal for the next…

December 21, 2024

Biden-Harris administration cancels another $4.28 billion in US student loans

US President Joe Biden has cancelled another $4.28 billion in student loans for nearly 55,000 people across the country, the…

December 20, 2024

This website uses cookies.

Read More