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Following the recent ban on social media e-commerce in Indonesia, TikTok has been actively seeking collaborations with local e-commerce entities to keep its presence thriving in the region.

  • Dialogues for Partnership: TikTok has initiated discussions with several notable Indonesian e-commerce companies. Among the five potential partners are Tokopedia, a unit of GoTo, Bukalapak, and Blibli, according to Teten Masduki, Indonesia’s Minister for Small-Medium Enterprises.
  • E-commerce Ban Impact: The Indonesian trade ministry implemented the e-commerce ban on social media platforms last month. The ban aimed not only to safeguard smaller brick-and-mortar merchants but also to ensure users’ data protection. This move was a significant blow to TikTok, compelling it to cease its TikTok Shop service.
  • User Base in Indonesia: TikTok’s user base in Indonesia is substantial, with a reported 125 million users making the region a vital market for the social media platform.
  • Potential for Recovery: Despite the ban, TikTok seems optimistic about re-establishing its e-commerce footprint in the country. Businesses have adapted to the situation by linking their Shopee and Lazada storefronts to their TikTok accounts, albeit with a noticeable decline in sales.
  • Future Plans: Teten Masduki is scheduled to meet TikTok CEO Shou Zi Chew later this month to discuss the company’s future in the Indonesian market.

While the e-commerce sector contributes less to TikTok’s overall revenue in Southeast Asia, the platform’s rapid growth presents an excellent opportunity for recovery and expansion. With the potential partnerships in sight, TikTok might soon restore its e-commerce operations in the archipelago.

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