Indonesia to review TikTok and GoTo e-commerce partnership trial

China’s TikTok and Indonesia’s tech group GoTo are set to conduct a trial e-commerce partnership for an extended period. Indonesia’s trade minister has confirmed that the regulators will be closely monitor this partnership. TikTok has already reached an agreement to acquire a significant portion of GoTo’s e-commerce division, Tokopedia. This strategic collaboration attempts to potentially benefit the local merchant community. The trial period will be closely monitored and consulted with relevant regulatory authorities, and the results will be evaluated to ensure the protection and support of small businesses, which are crucial to Indonesia’s workforce and a priority area for the government.

This move comes against the backdrop of Indonesia’s implementation of a ban on online shopping through social media platforms, citing concerns for the protection of small businesses and user data. TikTok’s acquisition aims to leverage its 125 million user base in Indonesia to generate substantial e-commerce revenue, capitalising on the projected growth of the country’s e-commerce market, which is expected to exceed $160 billion by 2030.