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TikTok seeks Indonesian e-commerce partnerships with Tokopedia, Blibli and Bukalapak following social media platform’s ban

ICT Tok is in talks with Indonesian e-commerce firms about possible partnerships, an Indonesian minister said on Monday, a month after Southeast Asia’s largest economy banned online shopping on social media platforms.

According to Teten Masduka, minister of small and medium-sized enterprises (SMEs), TikTok has been in talks with five firms, including e-commerce unit GoTo, Tokopedia, Bukalapak.com and Blibli.

“Some e-commerce companies in Indonesia I talked to TikTok,” he said in an interview, citing what company executives told him.

Indonesia’s trade ministry introduced the ban last month, aiming to protect smaller brick-and-mortar retailers and ensure user data is protected.

This was a particular blow to TikTok, which was forced to shut down its e-commerce site TikTok Shop. TikTok has 125 million users in Indonesia.

A spokesperson for TikTok Indonesia was unavailable for comment.

Tokopedia declined to comment. A Bukalapak representative said the company was not aware of such discussions. Blibli did not immediately respond to a request for comment.

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TikTok and Youtube are considering joining Meta to apply for e-commerce licenses in Indonesia after Southeast Asia’s largest economy banned online shopping social media platforms, said people familiar with the discussions.

The application, owned by Chinese technology giant ByteDance, is also in talks with local e-commerce players, they added.

Teten, one of the most outspoken critics of TikTok Shop before the ban, said he was given an assignment by the president Joko Widodo formulate rules regarding e-commerce.

I want them [TikTok] commit to running sustainable operations that do not harm domestic SME products

Teten Masduki, Indonesian Minister of Small and Medium-sized Enterprises
He plans to meet with TikTok’s CEO Chew Shou Zi later this month.

“I want them to commit to running a sustainable business that does not harm domestic SME products,” he said.

Teten also said he had proposed further regulations on the flow of imported goods into the country, but didn’t provide details.

TikTok’s e-commerce expansion faces headwinds in Southeast Asia following a ban in Indonesia

Sources say that until it ceased operations, TikTok Shop was delivering around 3 million parcels a day in Indonesia.

According to a report on the Internet economy in Southeast Asia prepared by Google, Singaporean state investor Temasek Holdings and consulting firm Bain & Co. Indonesia’s e-commerce market is anticipated to grow to about $160 billion by 2030 from $62 billion this 12 months.

Other major e-commerce players in Indonesia include Shopee and Ali Babais Lazada.
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