TikTok, the social media giant, has announced a $1.5bn investment in Tokopedia, Indonesia’s largest e-commerce platform, in a bid to reopen its online shopping business in the country. The deal will merge TikTok’s popular Indonesian shop with Tokopedia, giving TikTok a 75% stake in the joint venture.
The partnership, which will start with a pilot period under regulatory supervision, comes after TikTok’s e-commerce platform was shut down in Indonesia for violating new rules in South East Asia.
TikTok had launched its shopping feature in Indonesia in 2021 and expanded to other markets, with Indonesia being its most lucrative e-commerce location.
According to GlobalData, TikTok Shop sold $4.4bn worth of merchandise in Southeast Asia in 2022, while the e-commerce market in Indonesia is expected to reach $44bn by 2024.
However, the value of e-commerce deals in Indonesia has declined since 2021, when it peaked at $15.5bn. Globally, the e-commerce market is projected to grow from $5.9tn in 2022 to $9.3tn in 2027.
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