Maya Robertson
TikTok has successfully finalized its acquisition deal to take control of Tokopedia, Indonesia’s largest e-commerce platform. The merger, valued at $1.5 billion, saw TikTok, owned by China’s ByteDance, acquiring a significant 75.01% stake in Tokopedia from Indonesian tech conglomerate GoTo.
The news comes after the Indonesian government imposed a ban on social media platforms conducting online shopping in September, prompting TikTok to suspend its e-commerce service, TikTok Shop, in the country.
With the completion of this deal, TikTok and Tokopedia’s businesses are now officially merged under the entity PT Tokopedia, jointly owned by GoTo and TikTok as strategic partners in Indonesia, with TikTok holding a controlling stake.
The move is poised to revitalize TikTok’s online shopping endeavors in Indonesia, opening up new opportunities and expanding its presence in the thriving e-commerce landscape. It is expected to bring substantial benefits to Indonesia, especially its micro, small, and medium enterprises (MSMEs), providing them with a platform for growth and exposure. GoTo Group CEO Patrick Walujo expressed optimism about the collaboration, highlighting the positive impact on Indonesia’s business ecosystem.
Walujo said: “Today marks the completion of a partnership with TikTok that will continue to bring benefits to Indonesia and its MSMEs. It is also a big step forward for GoTo Group. Having reached positive adjusted EBITDA for the fourth quarter of 2023, we can now look forward to accelerating our progress, driven in part by supportive ecosystem partners. As our profitability and cash flow continue to improve, we will optimize our capital usage in line with a newly developed capital allocation plan, which may include a share buyback initiative, subject to regulatory and shareholder approval.”
Furthermore, GoTo Group shared noteworthy financial achievements, disclosing that it achieved positive adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in the final quarter of 2023, meeting targeted objectives. However, specific details about the financial figures will be unveiled in March. The positive financial results indicate the potential for GoTo’s profitability, reaffirming its position as a major player in diverse sectors such as ride-hailing, delivery, and financial services.
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