In 2024, TikTok Shop in Indonesia achieved a remarkable Gross Merchandise Value (GMV) of approximately $6.2 billion, placing the country as the second-largest TikTok Shop market globally. This impressive performance highlights Indonesia’s booming social commerce landscape and underscores the growing impact of short-video platforms on online shopping behavior. This article explores the drivers behind TikTok Shop’s success in Indonesia, the broader e-commerce context, and what lies ahead for social commerce in the region.

Indonesian Market Dynamics and Social Commerce Rise

Indonesia’s rise as the second-largest global market for TikTok Shop is no coincidence. The country is home to an immense digital-savvy population, with robust internet penetration and widespread smartphone usage. Indonesians are not just passive viewers; they actively engage with social media and increasingly treat platforms like TikTok as both entertainment and a marketplace.

The platform’s GMV of $6.2 billion for 2024 reflects a 39% year-on-year growth, as reported by Momentum Works. This rapid surge stems from TikTok Shop’s integration of livestream shopping, influencer marketing, and in-app seamless transactions. The compelling combination of interactive content and convenient purchase pathways proves to be a powerful formula for driving conversions.

Moreover, TikTok Shop captured approximately 11% of Indonesia’s overall e-commerce GMV, amounting to $6.2 billion out of an estimated $56.5 billion national GMV. That positioning—behind only giants like Shopee and Tokopedia—demonstrates how social commerce is reshaping Indonesia’s retail landscape.

Indonesia in Global Comparison

Globally, the United States remains TikTok Shop’s largest market, with a GMV of about $9 billion (around Rp147.5 trillion) in 2024. Indonesia, at $6.2 billion, comes in second—an impressive feat that reflects both the platform’s adaptability and local consumer appetite for immersive shopping experiences.

In Southeast Asia, Indonesia stands out as the dominant market for TikTok Shop. Other countries like Thailand ($5.74 billion), Vietnam ($4.45 billion), and the Philippines (~$3.12 billion) follow behind. Indonesia’s leading position is enabled by a young population, high engagement with video content, and increasing trust in online transactions.

Implications for Retailers and the E-Commerce Industry

The strength of TikTok Shop in Indonesia presents both opportunities and challenges for retailers. On one hand, social commerce offers a dynamic channel to reach audiences through content-driven discovery, live demonstrations, and immediate purchasing. Brands and sellers can tap into viral trends, creative storytelling, and influencer reach to elevate product visibility.

On the other hand, the dominance of short-video commerce raises strategic questions. Traditional e-commerce players like Shopee and Tokopedia must innovate to stay competitive. In fact, the GMV of TikTok Shop, when combined with Tokopedia following their merger, approaches $19 billion. This merger could significantly shift market dynamics and create a formidable new entity in Indonesia’s e-commerce ecosystem.

For sellers, aligning with TikTok Shop means embracing content creation, livestreaming, and community engagement. It also calls for agility to adapt to algorithms and emerging trends. For consumers, the fusion of entertainment and shopping delivers convenience and excitement—but it also shifts expectations for instant gratification and seamless checkout experiences.

Future Outlook: Growth, Regulation, and Market Evolution

Looking ahead, TikTok Shop Indonesia appears poised for further growth. Continued GMV expansion is likely if TikTok maintains engagement by refining its features, supporting seller integration, and broadening product categories.

However, regulatory frameworks play a crucial role. Indonesia’s government has previously taken steps to separate social media from e-commerce functions in response to concerns about small-business competition. How policymakers navigate these boundaries will impact how TikTok Shop evolves and how it collaborates with local merchants and platforms.

From an industry standpoint, we may see new hybrid models emerge—integrating social commerce elements into established marketplaces or building ecosystem partnerships that blend livestreaming, payments, logistics, and community.

Conclusion

The milestone of TikTok Shop Indonesia GMV $6.2 billion in 2024 places the country firmly at the forefront of the global social commerce revolution. This achievement reflects the convergence of digital engagement, innovative retail formats, and consumer demand for interactive online shopping. As TikTok continues to shape retail through video-driven commerce, the Indonesian market will remain a key battleground for innovation, regulation, and e-commerce transformation.