TikTok has announced a $1.5 billion deal to restart its online shopping business in Indonesia, AFP reported.
"TikTok, Tokopedia and GoTo will transform Indonesia's e-commerce sector, creating millions of new jobs over the next five years," GoTo said in a statement.
The deal comes after Indonesia banned online shopping on social media platforms in October to protect smaller merchants and user data, forcing TikTok to shut down its TikTok Shop e-commerce service.
As part of the deal, TikTok will buy 75.01% of GoTo's PT Tokopedia, Indonesia's largest e-commerce platform, for $840 million and will infuse the Indonesian business of TikTok Shop into the expanded Tokopedia structure.
"The strategic partnership will begin with a pilot period conducted in close cooperation with and under the supervision of the relevant regulatory authorities," the two companies said in a joint statement.
Much of Indonesia's 270 million people are active on social media, and TikTok has 125 million users in the country. /BGNES
