TEMPO.CO, Jakarta - Indonesian Minister of Tourism and Creative Economy Sandiaga Uno responded positively to the news of TikTok's collaboration with homegrown tech giant GoTo through its e-commerce Tokopedia.

Earlier today, December 11, 2023, GoTo announced that China’s video-sharing platform committed to investing over US$1.5 billion, or about Rp23 trillion, in Indonesia’s largest online marketplace.

“The impact on MSMEs (micro, small, and medium enterprises) will be positive. At least in the case of TikTok shop sales, which were stopped due to government regulations,” Sandiaga said at the ministry’s office on Monday, December 11, 2023.

TikTok shut down its online shopping feature, TikTok Shop, on October 4 following the government’s policy that prohibited social media from having a dual function as e-commerce by providing direct transaction services. The policy was outlined in the Trade Minister’s Regulation No. 31 of 2023.

With this strategic partnership, Sandiaga said that TikTok Shop would be revived and facilitated as Tokopedia has an e-commerce license.

“We appreciate TikTok for adapting to government regulations,” the minister added.

Under this strategic partnership, GoTo claimed that Tokopedia and TikTok are committed to providing wider benefits to MSME players in Indonesia and driving the creation of millions of new jobs in the next five years.

RIRI RAHAYU

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