GoTo, TikTok complete Indonesia merger

TikTok will hold the controlling stake in PT Tokopedia.

Indonesia’s PT GoTo Gojek Tokopedia Tbk and entertainment platform TikTok finalised their merger, aiming to provide a seamless shopping experience within both e-commerce platforms.

In a statement, GoTo said the Tokopedia and TikTok Shop are combined under PT Tokopedia jointly owned by the two parties, with TikTok holding a controlling stake.

GoTO Group CEO Patrick Walujo said they can now expect to accelerate the company’s progress on the back of supportive ecosystem partners, noting positive adjusted earnings before interest, taxes, depreciation and amortisation in the fourth quarter of 2023. 

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“Today marks the completion of a partnership with TikTok that will continue to bring benefits to Indonesia and its MSMEs (micro, small and medium-sized enterprises),” he said.

“As our profitability and cash flow continue to improve, we will optimize our capital usage in line with a newly developed capital allocation plan, which may include a share buyback initiative, subject to regulatory and shareholder approval,” he added.

The merger came following TikTok’s $1.5b investment in GoTo to support Indonesian MSMEs.