ikTok and Tokopedia have moved forward with their integration process as the Ministry of Trade unveiled their e-commerce partnership 'Shop | Tokopedia'. Tokopedia” application complies with Ministry of Trade Regulation No. 31/2023.
This means that TikTok has substantially complied with almost all provisions of the regulations related to the transition or migration process from the previous system to the new system.
Issi Karim, Director-General of Domestic Commerce at the Ministry of Trade, said the new app's front-end processing was largely compliant with regulations, as all transactions were conducted through Tokopedia.
“As for the backend, it includes all activities related to Shop | Tokopedia has been moved to the Tokopedia domain,” he told The Jakarta Post.
Additionally, Isy said that merchant operations such as Seller Center, Affiliate Center, and Brand Center are all included in Tokopedia's domain.
“They have also notified the sellers and partners that the transaction is taking place. [by] Tokopedia,” he added.
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He said he is optimistic about the progress made in TikTok's transition process.
“Generally speaking, almost all of the mandatory parameters in the following regulations: [Regulation] No. 31/2023 has been fulfilled,” Isy said.
In accordance with the provisions of the Ministry of Trade Regulation No. 31/2043 issued on September 26, 2023 on “Business license, advertising, guidance and supervision of operators in transactions via electronic systems”, social commerce platforms are It is prohibited to do so. Sales transactions, especially payment transactions between buyers and sellers.
The government moved to issue regulations with the aim of “regulating fair trade'' and “protecting small and medium-sized enterprises.'' [SMEs] In a fair way.”
Earlier, Trade Minister Zulkifli Hasan said the government's efforts to regulate e-commerce were reflected in the steps taken by TikTok and Tokopedia in establishing the partnership, which promised significant benefits for Indonesia. revealed.
Mr. Zulkifli also said that the government's measures regarding TikTok, Tokopedia and other digital platforms will help advance the country's e-commerce ecosystem and bring great benefits to small and medium-sized enterprises and industrial development towards the country's economic development. expressed his expectations.
“The government has granted a transition period of three to four months after the collaboration or until April 2024,” the minister said at the opening of the Buy Local 12.12 event held by TikTok and Tokopedia in Jakarta on December 12, 2023. said.
“First of all, let me explain that this is an e-commerce collaboration between Tokopedia and TikTok. [via] Tokopedia offers a 3-4 month trial period. [synchronizing] Technology is not easy,” the Minister said in his opening speech.
At the end of January, Tokopedia's parent company, PT GoTo Gojek Tokopedia, Tbk, went public. (GoTo) and TikTok announced the completion of an investment agreement.
According to a disclosure published on the Indonesia Stock Exchange on January 31, TikTok has purchased 75 percent of Tokopedia's shares through an investment in the Indonesian e-commerce platform.
This strategic partnership consisted of three schemes. First, Tokopedia bought the local assets of his TikTok Shop for US$340 million. Second, TikTok took over 75.01 percent of the newly issued Tokopedia shares, valued at $840 million. Third, TikTok plans to issue a promissory note worth $1 billion to Tokopedia to be used as working capital.
GoTo management said that Tokopedia and TikTok Shop Indonesia will be combined under PT Tokopedia, which is “currently jointly owned by GoTo and TikTok as strategic partners in Indonesia.”
“Today, our partnership with TikTok is completed and will continue to benefit Indonesia and its MSMEs.” [micro, small and medium enterprises]. This is a major step forward for GoTo Group,” GoTo Group CEO Patrick Warujo said in a press release.
“With positive adjusted EBITDA in the fourth quarter of 2023, we expect to accelerate our progress further, driven in part by our collaborative ecosystem partners,” said Patrick. , referring to earnings before depreciation and amortization.
In the same statement, TikTok Indonesia's e-commerce executive director Stephanie Susilo said the company is proud to officially welcome Tokopedia, its stakeholders, and all its divisions.
“We consider this moment as an important achievement in realizing our commitment to further contribute to the growth of Indonesia's MSME industry and digital economy with GoTo as a partner,” she said. .
