Teten Leaks, TikTok Approaches 5 RI Tech Ecommerce – 8 hours ago

Jakarta, CNBC Indonesia – TikTok is said to be approaching Tokopedia, Bukalapak and Blibli to become partners. This news was conveyed by the Minister of Cooperatives and UMKM Teten Masduki.

In the interview quoted Reuters, Teten revealed that TikTok had discussed with 5 Indonesian ecommerce companies including Tokopedia, Bukalapak, and Blibli. The other two companies were not mentioned by Teten.

Based on Momentum Works research results, the top five e-commerce companies in Indonesia are Shopee, Tokopedia, Lazada, Bukalapak, and Blibli.

Shopee and Tokopedia are competing fiercely to lead the Indonesian online shopping market, whose value will reach US$ 51.9 billion or almost reaching Rp. 775 trillion throughout 2022.

Shopee, a subsidiary of Sea Ltd which is headquartered in Singapore, controls 36 percent of Indonesia’s total e-commerce GMV. Tokopedia, which has now merged with Gojek to become GoTo, controls 35 percent of GMV.

The next two e-commerce companies are also competing fiercely in the middle class, namely Bukalapak and Lazada. Both will record a market share of 10 percent in 2022. TikTok Shop, which has been closed in Indonesia, controls 5 percent of GMV in 2022, followed by Blibli with 4 percent.

“Several e-commerce companies in Indonesia have discussed with TikTok,” said Teten, quoted from Reuters on Wednesday (15/11/2023).

TikTok Shop was closed in October after the Ministry of Trade issued revised regulations regarding e-commerce, which prohibited social media platforms from operating simultaneously as e-commerce and prohibited the control of cross-platform data by the same company.

According to sources Reuters, TikTok and YouTube are considering applying for e-commerce permits in Indonesia following in the footsteps of Meta, the parent company of Instagram, Facebook and WhatsApp.

Teten stated that he was given the task by President Jokowi to design e-commerce regulations. He is scheduled to meet TikTok CEO Shou Zi Chew in the near future.

“I want them to commit to building a sustainable business that does not harm MSME products,” said Teten.

Teten also proposed issuing additional regulations regarding imported products via e-commerce.

[Gambas:Video CNBC]

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