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Updated January 31st, 2024 at 17:33 IST

TikTok acquires 75% stake in Indonesia’s Tokopedia

GoTo Group CEO Patrick Walujo emphasised the positive impact of the partnership with TikTok on Indonesia and its micro, small, and medium enterprises (MSMEs).

Business Desk
TikTok
TikTok | Image:Unsplash
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TikTok has successfully finished the acquisition of a 75.01 per cent stake in Indonesia's leading e-commerce platform, Tokopedia, for $840 million, as per the agreement made in December. The deal, facilitated by Indonesian tech conglomerate GoTo, enables TikTok to revive its online shopping venture, TikTok Shop, in Indonesia. The move follows the suspension of TikTok's e-commerce service in the country due to a ban on social media-based online shopping imposed in September.

GoTo Group CEO Patrick Walujo emphasised the positive impact of the partnership with TikTok on Indonesia and its micro, small, and medium enterprises (MSMEs). The integration of TikTok Shop's Indonesia operations into the expanded Tokopedia entity signifies a strategic collaboration.

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In a statement, GoTo highlighted its achievement of positive adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) in the final quarter of 2023, meeting targeted goals. However, specific details regarding the amount will be disclosed in March. The diversified businesses of GoTo, including ride-hailing, delivery, and financial services, contribute to its overall profitability.

Furthermore, GoTo hinted at the possibility of a share buyback as its financial performance continues to improve. Before the announcement, GoTo's shares experienced a 1.15 per cent increase, closing at 88 rupiah each. This development is seen as a significant stride forward for both TikTok and GoTo Group in the dynamic landscape of Indonesia's technology and e-commerce sectors.

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(With Reuters inputs)

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Published January 31st, 2024 at 17:33 IST

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