Strategic Discussions: TikTok Explores Potential Partnerships with Major E-Commerce Players in Indonesia

Strategic Discussions: TikTok Explores Potential Partnerships with Major E-Commerce Players in Indonesia

TikTok has held meetings with several e-commerce companies in Indonesia to discuss possible partnerships, about a month after the Indonesian Ministry of Trade announced a ban on online shopping on the social media platform. Minister of Cooperatives and Small and Medium Enterprises (SMEs) Teten Masduki revealed that TikTok has been in contact with five e-commerce companies, including Tokopedia, Bukalapak, and Blibli. 

In an interview on Monday (13/11), Teten Masduki said that several e-commerce companies in Indonesia have been in dialogue with TikTok, referring to conversations reported to him by executives of these companies.

The Indonesian Trade Ministry's decision to ban online shopping on TikTok last month was aimed at protecting small merchants and keeping user data secure. This decision had a significant impact on TikTok, which eventually had to shut down its e-commerce service, TikTok Shop. In fact, TikTok itself is a very popular platform in Indonesia, with 125 million users.

But so far, spokespeople from TikTok Indonesia and Tokopedia have declined to comment on the matter. Representatives of Bukalapak also said their company had no information on the discussions, and Blibli did not respond to requests for comment.

On the other hand, TikTok and YouTube are considering the possibility of joining Meta to apply for an e-commerce license in Indonesia. The move follows a ban on online shopping on social media platforms imposed by Southeast Asia's largest economy. The app, which is owned by Chinese tech giant Bytedance, is also said to be in talks with several local e-commerce players.

Teten, who was one of the main critics of TikTok Shop before it was banned, revealed that President Joko Widodo has tasked him with drafting e-commerce regulations.

Later this month, he plans to meet with Tik-Tok CEO Shu Zi-Chu to discuss commitments to make the business sustainable and avoid harming domestic SME products.

Teten also mentioned that he has proposed additional regulations related to the flow of imported goods into the country, although he did not provide specific details.

According to a number of sources, TikTok Shop delivered approximately 3 million packages per day in Indonesia before it ceased operations.

According to a report on Southeast Asian Internet economies co-authored by Google, Temasek Holdings of Singapore, and Bain & Company, Indonesian e-commerce markets are expected to grow to approximately US$160 billion by 2030. This is up from $62 billion this year.

Source: Reuters

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