Indonesia’s GoTo in talks with TikTok over potential e-commerce partnership
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Indonesia’s biggest tech firm GoTo Gojek Tokopedia said on Friday it was in talks with short video app TikTok over a potential e-commerce partnership in the Southeast Asian country.
No final deal has been reached, GoTo added in a statement. The company also said the discussions did not include a takeover plan or any sale of more than 50 per cent of its shares to any party.
Indonesia in October banned online shopping on social media platforms to protect smaller merchants and users’ data, after which TikTok had to close its e-commerce service TikTok Shop. TikTok has 125 million users in the country.
Indonesia’s small and medium enterprises minister Teten Masduki told Reuters in November that TikTok had spoken to five companies including GoTo, Bukalapak.com and Blibli about possible partnership.
Bloomberg earlier this week said TikTok had struck an agreement to invest in a unit of GoTo, citing people familiar with the matter.
Indonesia’s e-commerce market is expected to grow to around $160 billion by 2030 from $62 billion this year, according to a report on Southeast Asia’s internet economy by Google, Singapore state investor Temasek Holdings and consultancy Bain & Co.
Questions & Answers
Q.Why would TikTok be interested in partnering with GoTo?
Why would TikTok be interested in partnering with GoTo?
TikTok had to close its e-commerce service in Indonesia after the government banned online shopping on social media platforms. A partnership could allow them to re-enter the lucrative Indonesian market, which is expected to grow significantly by 2030.
Q.Has a deal between GoTo and TikTok been finalised?
Has a deal between GoTo and TikTok been finalised?
No, a final deal has not yet been reached between GoTo and TikTok. GoTo stated that the discussions are ongoing regarding a potential e-commerce partnership, but no agreement is currently in place.
Q.What is the expected growth of Indonesia's e-commerce market?
What is the expected growth of Indonesia's e-commerce market?
Indonesia's e-commerce market is forecast to expand from $62 billion this year to approximately $160 billion by 2030. This projection comes from a report on Southeast Asia's internet economy by Google, Temasek Holdings, and Bain & Co.
Q.Is TikTok planning to take over GoTo or acquire a majority stake?
Is TikTok planning to take over GoTo or acquire a majority stake?
GoTo has stated that the current discussions do not involve a takeover plan or any sale of more than 50 per cent of its shares to any party. The talks are focused on a potential e-commerce partnership.
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