GoTo and TikTok Forge Strateg...

GoTo and TikTok Forge Strategic E-Commerce Alliance to Bolster Indonesian MSMEs

Dec 11, 2023
GoTo and TikTok Forge Strategic E-Commerce Alliance to Bolster Indonesian MSMEs

(Image Source: GoTo)

PT GoTo Gojek Tokopedia Tbk (GoTo), Indonesia's foremost digital ecosystem, and TikTok, the globally acclaimed entertainment platform, have announced a strategic partnership aimed at propelling sustained growth for Indonesia’s Micro, Small, and Medium-sized Enterprises (MSMEs) sector and the nation's digital economy.

As per the agreement, Tokopedia and TikTok Shop Indonesia’s operations will merge under the existing PT Tokopedia entity, with TikTok acquiring a controlling stake. The integrated entity will manage and operate the shopping features within the TikTok app in Indonesia.

TikTok has committed to a substantial investment, exceeding US$1.5 billion over time, to fortify the enlarged entity's future funding needs. This injection of capital will not dilute GoTo's stake. The collaboration is structured to enable both TikTok and GoTo to comprehensively serve Indonesian consumers and MSMEs. GoTo will remain a vital ecosystem partner to Tokopedia, leveraging its digital financial services through GoTo Financial and on-demand services via Gojek. Additionally, GoTo will receive ongoing revenue from Tokopedia, aligned with its scale and growth.

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