TikTok’s acquisition of a 75% stake in Tokopedia has had a major impact on the e-commerce sector in Southeast Asia. The deal, valued at $1.5 billion, was finalized in December 2023, and over the past year, both companies have worked to align their goals and push for growth in the local business ecosystem.

One of the most notable changes has been the dramatic increase in the Gross Merchandise Value (GMV) of TikTok Shop. From a GMV of $4.4 billion in 2022, the platform saw its value soar to $16.3 billion by 2023. This growth is largely attributed to the integration of Tokopedia’s e-commerce infrastructure with TikTok’s social media and shopping features. TikTok Shop has now become the second-largest e-commerce platform in Southeast Asia, thanks to this strategic acquisition.

However, the merger also led to significant restructuring within the companies. In June 2024, TikTok's parent company, ByteDance, carried out a mass layoff, impacting 450 employees across TikTok’s e-commerce and Tokopedia divisions. This restructuring was part of the efforts to streamline operations and align the team’s focus on shared objectives.

At the same time, concerns have emerged regarding the dominance of foreign products on the platform. Nearly 80% of the products sold on TikTok and Tokopedia are imported, raising questions about the impact on local businesses. Fiki Satari, Special Staff for the Ministry of Cooperatives and SMEs, has called for better oversight to protect local products from being overshadowed by foreign imports.

On a positive note, Tokopedia and TikTok have made strides in supporting local small and medium enterprises (UMKM). Initiatives like the “Beli Lokal” (Buy Local) campaign and live shopping events have significantly boosted sales for UMKM sellers. These programs have increased the visibility of local products and helped small businesses thrive in a competitive online environment.

Tokopedia also made some adjustments to its services. In October 2024, it temporarily suspended its investment products like Tokopedia Emas and Tokopedia Reksa Dana, transferring these to other units. This change is part of a broader effort to refocus on e-commerce and ensure the platform's alignment with TikTok’s goals.

For GOTO, Tokopedia’s parent company, the sale to TikTok has helped improve its financial position. While Tokopedia recorded significant losses, GOTO was able to reduce its overall losses thanks to the divestment. By moving away from Tokopedia’s losses, GOTO is now on track for profitability, with reduced financial strain.

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