And TikTok has made a significant acquisition of the majority of the Indonesian e-commerce company Tokopedia. This move is expected to reshape Indonesia's online marketplace and provide support to small businesses. CGTN's Silkina Ahluwalia reports from Jakarta.
After a brief pause, TikTok is back, turning viewers into buyers. The Chinese social media app is reshaping the future of shopping in Indonesia. TikTok invested 1.5 billion US dollars into Tokopedia, Indonesia's homegrown e-commerce website.
ADITIA GRASIO NELWAN Head of Communications, Tokopedia "Tokopedia's collaboration with TikTok aims to empower local SMEs in Indonesia, and helps to contribute to national economic growth, especially through digital channels. In principle, TikTok will be the platform to display a variety of products to consumers. Payment will be processed by Tokopedia. During the pilot period, we will migrate the backend system of TikTok to Tokopedia and we will ensure a seamless experience in our research interface."
Tik Tok has transformed Felicia's life. She sells unique items on her online shop, sourced all the way from China. With TikTok, she reaches hundreds of customers daily.
FELICIA FIYOZA TikTok Shop Seller "I'm very optimistic about this merger. I can go live again to sell our products. I tried going live in other platforms but the reach is just not as wide as Tik Tok."
TikTok's investment is clearly a game-changer.
It's integrating two digital ecosystems to dominate the market.
SILKINA AHLUWALIA Jakarta, Indonesia "TikTok is not just a social media app anymore, it's becoming a go-to shopping destination. And with Tokopedia's infrastructure, both companies are expected to capture a significant market share. Experts say they are projected to take over at least 40 percent of Indonesia's e-commerce market."
In a country where traditional markets are still common, this deal signifies an important shift.
Indonesia, a country of over 270 million people, is beginning to fully embrace online shopping and the digital economy.
NAILUL HUDA Digital Economy Director, CELIOS "Data shows that Indonesian users prefer to shop on social media apps. This includes other apps aside from Tik Tok. There has been a massive change in the way people shop in the past few years. This is what sets Tik Tok apart from other competitors, they are able to offer exactly what consumers are looking for in this day and age."
TikTok and Tokopedia is already redefining that ecosystem, promising a future where shopping is not just a transaction, but a valuable experience and a part of everyday life.
Silkina Ahluwalia, CGTN, Jakarta.