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Exclusive TikTok Shop Indonesia Makes a Comeback for $1.5Billion Deal

Exclusive TikTok Shop Indonesia Makes a Comeback for $1.5Billion Deal

Exclusive TikTok Shop Indonesia Makes a Comeback for $1.5Billion Deal

The social media app, TikTok, entered into a joint venture agreement with the Indonesian tech giant, Goto, TikTok Shop Indonesia in order to start its e-commerce services once again in the country.

ByteDance owned firm will inject more than $1.5 billion into Indonesian’s largest e-commerce provider Tokopedia over an extended period.

In October, TikTok Shop closed down in Indonesia due to a new set of regulations imposed on South-east Asia’s biggest economy.

There are approximately 125 million users of TikTok in Indonesia.

The agreement requires TikTok to purchase more than 75% of Tokopida and include TikTok shop’s Indonesia business in this acquisition.

According to the two firms in their common release, “the strategic partnership will begin with a pilot phase involving the oversight of and concurrence by the applicable regulatory authorities.”

Also, GoTo and TikTok stated that they will be promoting Indonesian products in their platforms and assist small and medium enterprises in developing their production and selling techniques.

This follows Indonesian government’s ban of online shopping through social media to shield smaller retailers and consumers’ data.

This made Tiktok’s largest online trading platform because many Indonesians had over 270 million active social media users who used it prior to its ban in October.

The announcement of the ban came after Indonesia’s President Joko Widodo said in September: “E-government requires us to watch out for e-commerce because it is good or bad depending on whether there are any rules.”

In this regard, online retailing in Indonesia has also gone up in the last couple of years. Compared to 2018 when the e-commerce sales were worth 79 trillion Indonesia rupiah (IR), the e-commerce sales are projected to increase more than six times to 689 trillion IR in 2023 as per the Central Bank

TikTok Shop has steadily increased its market share in Indonesia’s online retail business, which is dominated by platforms such as Tokopedia, Shopee, and Lazada.

The Indonesian laws were another blow for TikTok, which has been scrutinized in the United States, the European Union, and the United Kingdom, where Parliament has blocked the app from its network due to security concerns.

READ MORE: Exclusive TikTok Shop Indonesia shuts down, Impacting 6 Million Sellers

Why TikTok Shop Indonesia closed:

What’s next:

Although the final launching date of the Tiktok shop restarts in indonesia has not been known, people are already eagerly waiting for it. The uniqueness of TikTok Shop and its partnership are what set it apart from other e-commerce platforms existing in Indonesia. As such, it provides a novel platform for consumers to buy items and brands with their target audiences.

Keep a check on this spot since we will always inform you about changes in the electronic commerce realm.

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