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Trade Ministry Responds to Issue of TikTok Merging with GoTo

27 November 2023 22:06 WIB

TEMPO.CO, JakartaThe Indonesian Trade Ministry responded to issues stating that China-based super-app TikTok is planning to merge with homegrown tech giant PT GoTo Gojek Tokopedia to reopen its e-commerce feature TikTok Shop. 

Trade Minister Zulkifli Hasan, known as Zulhas, said the merger could be possible as long as it is done in line with the Trade Minister’s Regulation (Permendag) No. 31 of 2023 on business licensing, promotion, development and supervision of business operators in e-commerce.

“Just comply with it (Permendag 31/2023). We're not against it, we're not banning it,” Zulhas said at the Parliament Building, Senayan, South Jakarta on Monday, November 27, 2023.

He added that if the process is not right, the ministry will handle it. This aims to protect the country's industries and micro, small, and medium enterprises (MSMEs) so that domestic products can expand markets overseas.

Director General of Domestic Trade Isy Karim confirmed that TikTok has not yet applied for a permit to operate a commerce service.

News of the merger between TikTok and GoTo emerged after TikTok invited a number of e-commerce companies in Indonesia for discussions. This information was revealed by the Minister of Cooperatives and SMEs, Teten Masduki. 

However, Teten claimed that he did not know whether the conversation discussed TikTok's plans to collaborate or buy an e-commerce company in Indonesia.

Neither Gojek nor TikTok Indonesia have responded to Tempo’s requests for confirmation as of Monday, November 27, 2023.

RIANI SANUSI PUTRI

Editor's Choice: Post TikTok Shop Ban, 20% of Consumers Move to Other E-Commerce Platforms

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