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Trade Minister support TikTok-Tokopedia collaboration: big benefits for SMEs
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(Courtesy of TJP)
T
rade Minister Zulkifli Hasan revealed that the government’s efforts to regulate e-commerce was realized by the steps taken by TikTok to collaborate with Tokopedia will result in big benefits for Indonesia.
"Hopefully what the government is doing with Tokopedia and TikTok and others will help the [e-commerce] ecosystem to really provide great benefits for the progress of SMEs and industry, for the economic progress of the country," said the Minister of Trade, opening Buy Local 12.12 event held by TikTok-Tokopedia, in Jakarta on Tuesday (12/12/2023).
He added, “I also invite all Indonesian people, come join the 12.12 Harbolnas, visit Tokopedia and others, [in Harbolnas], there is a lot to make you happy, the products are cheap and good.”
According to the minister, the government gave a transition period of around three to four months, or until April 2024 after their collaboration to bring back TikTok Shop Indonesia.
"Let me explain first, this is Tokopedia's e-commerce collaboration with TikTok, the e-commerce is [via] Tokopedia, we are giving it a three-to-four-month trial period because technology [synergy] is not easy," said the Minister of Trade.
Hence, Zulhas, as he is better known, reminded the management of PT GoTo Gojek Tokopedia Tbk (GOTO), under the leadership of GoTo Main Director Patrick Walujo, to continue to perfect the system with this collaboration so that it can provide the best service for users.
"Of course, we will see how far the progress has gone so that it can be perfected, Mr. Patrick. Of course, we will assess it later," said the Minister of Trade, who has been in office since June 15, 2022.
Zulhas emphasized that the government does not prohibit any product, however has policies in place to regulate governance so that the e-commerce ecosystem can be useful and help develop the country's economy. In fact, he encouraged many domestic business actors to go international by joining e-commerce.
Furthermore, the e-commerce business noted a significant growth in 2018 amountin up to Rp 6.8 trillion, and an increase to Rp 22.7 trillion in 2022. “Certainly 2023 will increase [the number of transactions],” said Zulhas.
"This is what we regulate, we regulate so that if TikTok is banned, it is not banned but regulated, TikTok will still exist, social media will remain, what doesn't exist is e-commerce. So, we organize this so that we can mutually benefit each other [with Tokopedia synergy].”
Last Monday (11/12), GOTO and TikTok management stressed that the collaborative synergy through TikTok’s direct investment in Tokopedia, e-commerce that belonged to GoTo, will encourage the growth of the digital economy, empowerment and market expansion for national MSME players.
Through this collaboration, TikTok Shop will operate in Indonesia through PT Tokopedia, where TikTok will become the controlling shareholder. TikTok will invest more than US$ 1.5 billion, or the equivalent of around Rp. 23 trillion (assuming an exchange rate of Rp. 15,500/US$), as a long-term commitment to invest to support Tokopedia's operations, without causing further dilution of GoTo's ownership of Tokopedia.
Previously, TikTok Shop Indonesia, owned by ByteDance Ltd from China, halted e-commerce transactions on its application since Wednesday, 4 October 2023. This closure is a form of compliance with Minister of Trade Regulation Number 31/2023, which prohibits e-commerce and social media features in one application.
