Tiktok and Tokopedia collaborate, who will benefit the most?

Tiktok Shop collaborates with Tokepedia.

JAKARTA -- Tiktok Shop is back in Indonesia to coincide with the 12.12 shopping promo. The digital platform is operating again in Indonesia through collaboration with Tokopedia.

The giant from China invested 1.5 billion US dollars or around Rp. 23.4 trillion in Tokopedia. This is a long-term commitment to support the operations of the e-commerce platform.

Minister of Trade Zulkifli Hasan welcomed the return of the Tiktok Shop and appreciated the strategic partnership between Tokopedia and Tiktok. Zulkifli emphasized that Tokopedia continues to act as an e-commerce platform that sells products.

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The synergy, he said, would be given a trial period of approximately 3-4 months. According to Zulkifli, this trial period is to perfect the technology after Tiktok's agreement with Tokopedia.

Executive Director of E-commerce Tiktok Indonesia Stephanie Susilo said Tiktok will continue to contribute to supporting Micro, Small and Medium Enterprises (MSMEs) in Indonesia. Moreover, the digital economy is currently Indonesia's priority.

Previously, Tiktok stated that through an agreement with Gojek Tokopedia (GoTo) it could expand benefits for Indonesian MSME users and players. The growth of Tokopedia's business after being combined with Tiktok Shop Indonesia will bring benefits to GoTo, which will remain an ecosystem partner for Tokopedia, including reaching a wider market with digital financial services through GoTo Financial and on-demand services from Gojek.

Tiktok said that in the future, together with Tokopedia and the GoTo Group, they are committed to providing wider benefits for MSME players in Indonesia by utilizing the e-commerce platform. Also encouraging the creation of millions of new jobs in the next five years.

With the merger of the two businesses, more than 90 percent of merchants are MSMEs. These MSME players will receive support through various programs from TikTok, Tokopedia and the GoTo Group.