TikTok Shop Set to Reopen in Indonesia Through Partnership with Tokopedia

Reports suggest that TikTok Shop is poised to make a comeback in Indonesia, with TikTok reportedly forming a joint venture with Tokopedia.

Arshi Adini, Executive Director of the Indonesian E-commerce Association (IDEA), did not provide detailed comments on the matter. However, from an industry perspective, affiliation is highly plausible.

E-commerce players welcome the potential collaboration between TikTok and ecommerce platforms and encourage other social media companies to take similar steps.

"It's not necessarily TikTok, but in the industry, from our perspective, affiliation is highly likely, joining forces to expand and reach a wider market," said Arshi in Jakarta on Thursday (November 30, 2023).

"I can't provide detailed answers, but in the fast-paced digital technology industry, possibilities can arise within weeks, minutes, or months," he added.

According to Bloomberg's report earlier this week, TikTok's parent company is ready to invest in Tokopedia. The two companies are reportedly planning to establish a joint venture in Indonesia.

Since its closure last October, TikTok has been exploring ways to relaunch its Shop service in the country. One of the approaches includes reaching out to several Indonesian e-commerce platforms.

Additionally, TikTok CEO Shou Chew has reportedly written to President Joko Widodo (Jokowi), expressing a desire to meet with the president.

However, Minister of Cooperatives and SMEs, Teten Masduki, stated that President Jokowi asked him to meet with Chew. According to Reuters, Teten and Chew reportedly met at the end of this month.

Meanwhile, in a recent Reuters report, TikTok has been in the process of obtaining permission to operate again in Indonesia. This information comes from Deputy Minister of Trade Jerry Sambuaga.

"Previously, they [TikTok] did not comply with regulations in Indonesia. They did not have permits. Now, they are in the process of obtaining them," explained Jerry.

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