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View all search resultsChinese social media app TikTok’s reentry into the Indonesian e-commerce market, through its purchase of a 75 percent stake in homegrown e-commerce platform Tokopedia, means entities with majority foreign ownership now command about 86 percent of the local e-commerce market.
Chinese tech firm ByteDance’s social media subsidiary TikTok has bought a controlling stake in Tokopedia, Indonesian tech company GoTo Gojek Tokopedia’s electronic commerce (e-commerce) platform. The corporate action led to the reentry of TikTok’s integrated online shopping service TikTok Shop after it was booted from Indonesia by a ministerial regulation that bans social commerce (s-commerce). The transaction looks set to be a major shift in the Indonesian online retail market, but it also raised concerns about foreign firms’ domination.
Even after the latest trade regulation, offline sellers are still up in arms over cheap imported goods, which still proliferate online marketplaces – as the Post found out when it purchased two pairs of sneakers for less than $4 each.
Social media platforms reportedly keen to engage in e-commerce in Indonesia, despite the government recently restricting social commerce, will need to go through several regulatory hoops according to business analysts.
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