GoTo and TikTok form $1.5b partnership to support Indonesian SMEs

GoTo’s Tokopedia and TikTok Shop Indonesia will also be combined under PT Tokopedia.

PT GoTo Gojek Tokopedia Tbk (GoTo) and leading online platform TikTok entered a mutually beneficial strategic partnership for the long-term support of the small and medium-sized enterprises (MSME) sector and the digital economy in Indonesia.

For the partnership, TikTok has dedicated over US$1.5b in investments to assist aspiring businesses in the sector for the first quarter of 2024.

Through the agreement, GoTo’s Tokopedia and TikTok Shop Indonesia’s businesses will be merged under the PT Tokopedia brand wherein the shopping features within TikTok will be operated by GoTo. However, TikTok will have a controlling stake in the entity.

The strategic partnership will enable both entities to serve Indonesian consumers and MSMEs on a more comprehensive slate. GoTo will serve as a beneficiary and ecosystem partner to Tokopedia through digital financial services GoTo Financial and on-demand services Gojek, as well as a recipient of Tokopedia’s revenue stream.

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Under the agreement, a pilot period has been carried out by regulators, with the first being the Beli Lokal campaign to be launched for Indonesia’s National Online Shopping Day (Harbolnas) on 12 December. The latter campaign will gauge engagement for local merchants and MSMEs, and highlight Indonesian products.

TikTok, Tokopedia, and GoTo have expected the partnership to produce millions of job opportunities over the next five years and result in over 90% of online businesses commencing a series of joint initiatives.