JAKARTA - PT Gojek Tokopedia Tbk (GOTO) joins hands with TikTok Pte. Ltd. to drive growth in the Micro, Small, and Medium Enterprises (MSMEs), TikTok will gradually put in investment worth USD 1.5 billion to support the operation of PT Tokopedia, GOTO’s subsidiary.

R. A. Koesoemohadiani, Corporate Secretary of GOTO, confirmed that Tokopedia and TikTok Shop Indonesia will be combined under PT Tokopedia. “TikTok will possess control over PT Tokopedia. The shopping service feature of TikTok in Indonesia will be operated and managed by Tokopedia,” she added in the press release quoted Monday (11/12).

According to Koesoemohadiani, the strategic partnership between both parties will begin today (12/12), right on National Online Shopping Day (lit. Hari Belanja Online Nasional/Harbolnas). The company will then put up a “Purchase Local” campaign on TikTok, allowing its users to interact with consumers’ selected products.

It is said that TikTok’s investment does not induce dilution over GOTO’s portion in Tokopedia. Tokopedia’s business growth, after combining it with TikTok Shop Indoensia, is projected to grant higher returns for GOTO, including more expansive consumer acquisition and more extensive market, supported by GoTo Financial and on-demand services from Gojek. (LK/ZH)