TikTok to Invest $1.5 Billion , to Restart E-Commerce in Indonesia.
In October, Indonesia banned social media platforms from offering online shopping, which forced the popular video sharing app to shutter TikTok Shop, CNN reports.
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But now, TikTok has announced that it will become controlling shareholder of GoTo Gojek Tokopedia, the country's largest e-commerce platform.
It will then "inject TikTok Shop" into the larger Tokopedia entity.
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TikTok has committed to invest over $1.5 billion in the enlarged entity over time, to provide future funding required by the business, without additional dilution to GoTo, TikTok and GoTo, via statement.
The strategic partnership will commence with a pilot period carried out in close consultation with and supervision by the relevant regulators, TikTok and GoTo, via statement.
TikTok will give Tokopedia a $1 billion promissory note for working capital needs.
The deal is expected to be finalized by Q1 2024.
By the year 2030, Indonesia's e-commerce industry is expected to grow to $160 billion.
This year, the industry was worth about $62 billion.
