GoTo and TikTok Join Forces for Indonesian MSMEs’ E-commerce Boost
GoTo Gojek Tokopedia Tbk (GoTo) and TikTok, the renowned global entertainment platform, have announced a strategic partnership to propel long-term growth for the country’s Micro, Small, and Medium Enterprises (MSMEs).
Under this partnership, TikTok will take a controlling stake in PT Tokopedia, combining Tokopedia and TikTok Shop Indonesia’s businesses. TikTok has pledged a substantial investment of over US$1.5 billion in the enlarged entity. This collaboration marks a significant step forward in enhancing the capabilities of both TikTok and GoTo to serve Indonesian consumers and MSMEs more comprehensively.
The partnership starts with a pilot period featuring the “Beli Lokal” initiative. Scheduled to launch on December 12th, coinciding with Indonesia’s National Online Shopping Day (Harbolnas), the campaign aims to boost Indonesia’s digital economy by supporting local MSMEs. “Beli Lokal” will be available on both TikTok and Tokopedia, promoting a diverse array of merchants with a particular focus on Indonesian products.
Empowering MSMEs
Over 90% of the combined business’s merchants being MSMEs, the collaboration commits to several joint initiatives to support them:
- Product Promotion: Tokopedia and TikTok’s platforms will actively promote Indonesian products.
- Capacity Building: A comprehensive program will focus on skills development and provide resources for upstream production and selling.
- Merchant Support: Assistance in areas such as marketing, branding, and sustainable business practices to encourage online sales.
- Global Exposure: Local brands will receive help in promoting their products in international markets.
The partnership signals a transformative period for Indonesia’s e-commerce sector, anticipating the creation of millions of new job opportunities over the next five years. The collaboration aims to establish technology centers across Indonesia, fostering local tech talent and ensuring a marketplace that encourages fair competition.
