TikTok-GoTo Team Up: TikTok to Invest US$1.5bn in GoTo

TEMPO.CO, Jakarta - PT GoTo Gojek Tokopedia (GoTo) announced its partnership with TikTok today, Monday, Dec. 11, 2023. Through this partnership, Tokopedia and TikTok Shop Indonesia will merge under PT Tokopedia. TikTok also agreed to invest US$1.5 billion in GoTo.

"TikTok will invest more than US$1.5 billion, as a long-term commitment to support the operational of Tokopedia, without further dilution on GoTo's ownership of Tokopedia," announced GoTo on Monday.

GoTo hopes the transaction will be finished in the first quarter of 2024. The company stated this measure is in line with GoTo Group's step to strengthen its financial position and its strategy to expand its total addressable market.

To ensure PT Tokopedia's sustainability in pushing the national digital economy development, the company will form a committee to facilitate the transition, headed by Patrick Walujo. 

TikTok will take control over PT Tokopedia, while the retail feature in TikTok Indonesia will be operated by PT Tokopedia. TikTok will become a partner to Tokopedia, including expanding its market with digital financial services through GoTo Financial and on-demand services from Gojek.

According to GoTo, this partnership will be profitable for the company. GoTo will also receive the profit from Tokopedia following its growth. The company is optimistic that the partnership will strengthen the development of Indonesia's digital economy and empower as well as expand the markets for MSMEs.

TikTok, Tokopedia, and GoTo Group claimed to have committed to giving bigger benefits to national MSMEs in Indonesia through their e-commerce platforms. The company also stated that it will push to create millions of new employment opportunities for the next five years.

RIANI SANUSI PUTRI

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