The deal comes after Indonesia in October banned online shopping on social media platforms to protect smaller merchants and users’ data, forcing TikTok to close its ecommerce service TikTok Shop.
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Under the deal, TikTok will buy 75.01% of GoTo’s PT Tokopedia, Indonesia’s biggest e-commerce platform, for $840 million and inject TikTok Shop’s Indonesia business into the enlarged Tokopedia entity.
“The strategic partnership will commence with a pilot period carried out in close consultation with and supervision by the relevant regulators,” the two firms said in a joint statement.
Many of Indonesia’s over 270 million population are active social media users, and TikTok has 125 million users in the country.