TikTok completes deal for Indonesia's top e-commerce platform


JAKARTA: TikTok has completed its deal to take control of Indonesia's biggest e-commerce platform, which has allowed the Chinese social media giant to restart for its online shopping business in the country.

Indonesian tech conglomerate GoTo said on Wednesday (Jan 31) that TikTok, owned by China's ByteDance, had completed a deal agreed in December to buy 75.01% of Tokopedia for US$840 million from the conglomerate.

TikTok had been forced to close its relatively new e-commerce service, TikTok Shop, in Indonesia after the country banned online shopping on social media platforms in September, citing the need to protect smaller merchants and users' data.

Under the deal with GoTo, TikTok Shop's Indonesia business will be injected into the enlarged Tokopedia entity.

"Today marks the completion of a partnership with TikTok that will continue to bring benefits to Indonesia and its MSMEs [micro, small and medium enterprises]. It is also a big step forward for GoTo Group," GoTo Group CEO Patrick Walujo said in a statement.

In the same statement, GoTo said it achieved positive adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in the final quarter of 2023, as targeted, though details on the amount will not be shared until March.

GoTo's businesses include ride-hailing, delivery and financial services.

As its profitability improves, GoTo also said it may conduct a share buyback.

Prior to the announcement, GoTo shares closed up 1.15% at 88 rupiah each. - Reuters

Indonesia , TikTok , Tokopedia

   

Next In Aseanplus News

Magnitude 6.2 earthquake strikes near west coast Honshu, Japan, says EMSC
Man in China brings home surrogate baby a year after wife’s death to claim inheritance
AI Elon Musk as Ming dynasty official goes viral for explaining DOGE efficiency with kung fu
Asean News Headlines at 10pm on Tuesday (Nov 26, 2024)
Singapore-China ties ‘especially valuable’ amid uncertain global environment, says Lee Hsien Loong in meeting with President Xi
Thai banks' bad loans highest in nearly three years, but manageable, central bank says
Indonesia's Supreme Court reverses acquittal of former official in slavery case
Vietnam death row tycoon begs court for her life
Laos hostel staff detained after backpackers' deaths; all detained are Vietnamese
Game of Thrones in Manila: Marcos-Duterte feud turns nasty with assassination threat

Others Also Read