The Indonesian E-Commerce Association (idEA) responded to reports that the Tokopedia app would be closed and fully moved to TikTok Shop (04/02).

The association urged the public and business actors not to speculate beyond official statements.

Platform Integration Considered Normal in Digital Industry

idEA Secretary General Budi Primawan said the association views the situation proportionally and emphasized that TikTok has confirmed its commitment to continue investing in Tokopedia and Indonesia’s digital ecosystem.

“From the association’s perspective, platform integration dynamics or business model adjustments are common in the global digital industry,” Budi told Bisnis on Wednesday (04/02).

He explained that idEA’s main focus is maintaining the e-commerce ecosystem’s sustainability, ensuring business certainty for sellers—especially MSMEs—and protecting consumers.

The association also promotes open communication between industry players and the government to ensure that e-commerce developments align with regulations and national interests.

“As an association, we will monitor this development continuously to maintain a healthy and sustainable digital business climate,” Budi said.

TikTok Confirms Continued Investment in Tokopedia

TikTok had previously confirmed that it would continue investing in Tokopedia and Indonesia amid rumors of a full transfer to TikTok Shop.

“We continue to invest in Tokopedia and Indonesia as part of our strategy to drive sustainable growth and innovation,” a TikTok spokesperson told Bisnis on Tuesday (03/02).

Social Media Posts Trigger Speculation About Tokopedia App

The issue first circulated widely on social media platform X.

Posts suggested that TikTok Shop would operate through a separate app while Tokopedia would be discontinued.

One post from an account that often shares e-commerce and technology news stated, “Words from friends in Tokopedia, they are going to shut down the Tokopedia app and TikTok Shop will have its own separate app.”

TikTok’s Majority Stake in Tokopedia Highlights Integration

TikTok invested US$1.5 billion, or around Rp23 trillion, to acquire a 75.01% stake in Tokopedia in early January 2024.

Tokopedia issued 38.19 million new shares, all acquired by TikTok.

PHOTO: FREEPIK

This article was created with AI assistance.

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