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TikTok seeks Indonesian e-commerce partnerships with Tokopedia, Blibli, Bukalapak after social media platform ban

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TikTok has been holding talks with Indonesian e-commerce companies about possible partnerships, an Indonesian minister said on Monday, a month after Southeast Asia’s largest economy banned online shopping on social media platforms.

TikTok has spoken with five companies including GoTo’s e-commerce unit Tokopedia, Bukalapak.com and Blibli, according to Teten Masduki, minister for small-medium enterprises (SMEs).

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

Indonesia’s trade ministry implemented the ban last month, aiming to protect smaller bricks-and-mortar merchants and ensure the protection of users’ data.

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Outcry among TikTok sellers after Indonesia bans transactions on social media platforms

Outcry among TikTok sellers after Indonesia bans transactions on social media platforms

It was a particular blow to TikTok, which was forced to close its e-commerce service TikTok Shop. TikTok has 125 million users in Indonesia.

A TikTok Indonesia spokesperson was not available to comment.

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

Indonesian woman who prayed then ate pork on TikTok video jailed for 2 years

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

The app, owned by Chinese technology giant ByteDance, was also pursuing talks with local e-commerce players, they added.

Teten, one of the staunchest critics of TikTok Shop before the ban, said he has been tasked by President Joko Widodo to formulate rules on e-commerce.

I want them [TikTok] to commit to have a sustainable business that does not harm domestic SME products

Teten Masduki, Indonesia’s minister for small-medium enterprises
He plans to meet TikTok Chief Executive Chew Shou Zi later this month.

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

Teten also said he has proposed further regulations for the flow of imported goods into the country but did not provide details.

TikTok’s e-commerce push faces headwinds in Southeast Asia after Indonesia ban

Until it stopped operations, TikTok Shop was delivering about 3 million parcels a day in Indonesia, sources have said.

Indonesia’s e-commerce market is expected to grow to around US$160 billion by 2030 from US$62 billion this year, according to a report on Southeast Asia’s internet economy by Google, Singapore state investor Temasek Holdings and consultancy Bain & Co.

Other major e-commerce players in Indonesia include SEA’s Shopee and Alibaba’s Lazada.

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