“The strategic partnership will commence with a pilot period carried out in close consultation with and supervision by the relevant regulators,” the two firms said in a Monday statement. Under the deal, TikTok will buy 75.01% of GoTo’s Tokopedia, Indonesia’s biggest e-commerce platform, for $840 million and inject TikTok Shop’s Indonesia business into the enlarged Tokopedia entity. “We need to see what kind of market disruption will happen after this partnership,” said analyst Maximilianus Nico Demus at Pilarmas Investindo Sekuritas. Shares in GoTo, whose business includes ride-hailing, delivery and financial services, tumbled 8.3% after the announcement, as some investors took profit from the stock’s recent rally on expectations of a deal with TikTok. The market was among few where the short video app operator launched TikTok Shop earlier this year to leverage a large user base and to challenge fast-growing online sellers such as Shein and PDD Holdings’ ( PDD) Temu, whose viral marketing on TikTok helped their rapid growth. Indonesia banned online shopping on social media platforms in October to protect smaller merchants and users’ data, forcing TikTok to close its e-commerce service TikTok Shop. Jakarta - China’s TikTok will invest $1.5 billion to become controlling shareholder of an e-commerce unit of Indonesia’s GoTo Gojek Tokopedia, as it seeks to restart its online shopping business suspended by regulators in Southeast Asia’s largest economy.
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