Heaptalk, Jakarta — TikTok has officially declared its strategic affiliation with the giant digital ecosystem PT GoTo Gojek Tokopedia Tbk by investing over US$1.5 billion to reinforce the evolution of the digital economy, particularly for Indonesian MSMEs. This cooperation indicated the return of the TikTok Shop service under the GoTo ecosystem.
As a part of this strategic partnership, these entities will combine their business flow under PT Tokopedia, whereby TikTok will control this e-commerce company Tokopedia. As revealed in the information openness of Indonesia’s Stock Exchange, TikTok investment is claimed to not dilute GoTo’s ownership in Tokopedia.
Furthermore, Indonesia’s IDX openness also disclosed the agreement to take part in shares on December 10, 2023, regarding TikTok’s investment in Tokopedia worth US$840 million. The company will allocate this investment to participate in the new shares issued by this e-commerce giant.
After completing this transaction in the first quarter of 2024, TikTok will control share ownership of up to 75.01% of Tokopedia. Meanwhile, GoTo will maintain a share ownership of 24.99% in Tokopedia. Moreover, Goldman Sachs will act as the financial advisor of GoTo Group.
“This transaction, which is expected to close in the first quarter of 2024, aligned with the company’s strategy to reinforce its financial and strategic position by growing its total addressable market,” GoTo Gojek Tokopedia Management said.
According to GoTo, this partnership began with a trial period of consultation and supervision from relevant ministries and institutions. The program launched during the trial period is the Buy Local Campaign on December 12, 2023, coinciding with National Online Shopping Day (Harbolnas). This program will showcase multiple merchants, primarily focusing on trading local products.
By performing this strategic collaboration, these technology companies intend to unlock numerous job opportunities for the coming five years. Through the business incorporation mechanism, more than 90% of merchants contained MSME players, which will obtain multiple facilities to grow their business, such as marketing support, digital talents hub provision spread in diverse Indonesia locations, and targeted market measurement competitively.
“To ensure the PT Tokopedia business continues to operate in the best interest of Indonesia’s digital economy, a committee under the enlarged entity will be established to facilitate transaction and integration, chaired by GoTo Group CEO Patrick Walujo, with strategic support from members of both businesses.” affirmed the Management team of GoTo.
