The previously announced transaction followed the Indonesia government’s ban on social commerce companies from facilitating direct e-commerce payments on their platforms in September.
Indonesian internet giant GoTo and entertainment platform TikTok have announced the official combination of Tokopedia and TikTok Shop Indonesia’s businesses under the existing PT Tokopedia entity, in which TikTok holds a controlling stake, on Jan 31.
In December last year, ByteDance-owned TikTok committed to invest over US$1.5 billion ($2.01 billion) in the enlarged entity over time to provide future funding required by the business, without additional dilution to GoTo.
