TikTok's e-commerce service is going to restart in Indonesia on December 12 with strategic cooperation with Indonesia's GoTo Group, GoTo said on Monday.
According to a statement by GoTo, its e-commerce unit and TikTok Shop business will be combined under the existing entity, PT Tokopedia, with TikTok taking a controlling stake of the enlarged entity.
For this merging cooperation, TikTok has also committed over 1.5 billion US dollars in the next few years to provide financial support for the future development of the e-commerce business, said the statement, adding that the two companies would work together to promote Indonesia's digital economy and support local small- and medium-sized enterprises.
GoTo Group, or PT GoTo Gojek Tokopedia Tbk, is Indonesia's largest Internet technology company. The GoTo ecosystem consists of on-demand services, e-commerce, financial technology and logistics through the platforms of Gojek, Tokopedia, GoTo Financial and GoTo Logistics.
TikTok halted its e-commerce feature, TikTok Shop, on October 4 due to new regulation implemented by the Indonesian Trade Ministry, which banned direct sales on social media platforms.
