TIKTOK ACQUIRED GOTO: WHITE KNIGHT OR HOSTILE TAKEOVER?

Tiktok was forced to close its TikTok shop on 4 October 2023 by Government of Indonesia, i.e Ministry of Information and Ministry of Trade.

Techasia noted that this is the worst outcome for Tiktok after the Indonesian government announced the latest trade regulation a week before, banning direct e-commerce transactions on a social media app.

To continue operating in Indonesia, Tiktok should establish a new entity, obtain an ecommerce license from the Ministry of Trade, and create a standalone TikTok Shop app. The social media giant then took further steps than establishing the new entity; it announced a strategic partnership with Tokopedia under PT GoTo Gojek Tokopedia (GoTo) in December 2023.

Based on Techcrunch (2023), TikTok put the USD1,5 billion (equivalent to Rp 23 T), which allows TikTok to have a controlling stake of 75,01% in the new entity.