TikTok has committed to investing billions of US dollars in Southeast Asia, particularly in Indonesia, as part of a significant effort to establish the TikTok Shop e-commerce service.
However, the Indonesian government has responded to this move, urging TikTok Shop and Tokopedia to maintain a healthy digital ecosystem and respect national economic development.
The Minister of Cooperatives and SMEs, Teten Masduki, stated that TikTok Shop is welcome to merge with local e-commerce as long as it avoids predatory pricing practices, selling goods below production costs to eliminate competitors.
Additionally, the Minister of Communication and Informatics, Budi Arie Setiadi, emphasized the need for consumer benefits, national gains through reduced imports, and protection for SMEs.
The decision on this investment is expected to be finalized in the coming weeks. If successful, it would mark one of the largest collaborations between social media and e-commerce platforms in Indonesia.
