TikTok has completed its deal to take over Indonesia’s largest e-commerce platform, marking a return of the social media giant’s online shopping business in the country.
Chinese-owned TikTok will buy 75% of Tokopedia for $840m from Indonesian tech giant GoTo.
GoTo CEO Patrick Walujo said: “Today marks the completion of a partnership with TikTok that will continue to bring benefits to Indonesia and its micro, small and medium enterprises. It is also a big step forward for GoTo Group.”
The move comes after the Indonesian government forced the social media platform to close down its TikTok Shop e-commerce service in the country.
Indonesia banned online shopping on social media platforms in September last year over concerns about user data and smaller merchants missing out.
The e-commerce market in Indonesia is continuing to grow at a rapid pace. The value of e-commerce sales in the country is expected to hit $44bn in 2024, according to Indonesia’s central bank.
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Despite the predicted rise in e-commerce sales, the value of e-commerce deals in the country peaked in 2021, according to GlobalData’s deal database.
In 2021, the value of e-commerce deals in Indonesia reached $15.5bn, considerably more than the previous year which totalled $3.2bn.
In 2023 so far, the value of e-commerce deals has grown even smaller than 2020, with a total of 2.8bn.
According to GlobalData forecasts, the global e-commerce market grew from $2.5tn in 2016 to $5.9trn in 2022 at a compound annual growth rate of 15%.
By 2027, GlobalData expects the e-commerce market to be worth $9.3tn.