Indonesia greenlights TikTok’s collaboration with GoTo

Indonesian Trade Minister Zulkifli Hasan has given the green light for collaboration between ByteDance Ltd, the Chinese parent company of video-sharing app TikTok, and Indonesia's PT Gojek Tokopedia Tbk (GoTo) to establish an e-commerce platform.

A trader conducts live sales via streaming at a store in the Tanah Abang textile market in Jakarta, Indonesia,  (Photo: https: jakartaglobe.id)

Indonesian Trade Minister Zulkifli Hasan has given the green light for collaboration between ByteDance Ltd, the Chinese parent company of video-sharing app TikTok, and Indonesia's PT Gojek Tokopedia Tbk (GoTo) to establish an e-commerce platform.

Speaking after the launch of the National White Paper on Digital Economic Development Strategy in Jakarta on December 6, Zulkifli affirmed that the collaboration is permitted, excluding ventures that are entirely new.

This represents a shift in the government's stance, which had previously imposed a ban on TikTok Shop, TikTok's e-commerce arm, due to concerns about predatory pricing negatively impacting local micro, small, and medium enterprises (MSMEs).

The minister emphasised that collaboration is acceptable as long as it adheres to existing regulations, specifically Minister of Trade Regulation 31/2023 on Licensing, Advertising, Development, and Supervision of Commerce Companies Utilizing Electronic Systems.

Indonesia has imposed a ban on social media companies venturing into e-commerce or social commerce. TikTok Shop faced restrictions as the government aims to maintain the balance between online trading and traditional offline market activities to safeguard local businesses.

The minister clarified that collaboration with foreign industries is permissible. The government remains committed to supporting the empowerment of MSMEs and local e-commerce entities, with a focus on enhancing consumer protection.

VNA