TikTok, a subsidiary of ByteDance Ltd, is planning to invest in GoTo Group's online retail company Tokopedia, situated in Indonesia. According to Bloomberg, both corporations are in talks about a potential merger.
According to people familiar with the situation, the negotiations also include the two corporations working together to establish a new e-commerce platform. In Jakarta, GoTo shares climbed as much as 8.3%.
In September, Indonesia issued broad restrictions requiring TikTok to split payments from in-country purchases. The new restrictions prohibit Indonesian social media businesses from accepting direct payments for online goods.
TikTok ceased online shopping in Indonesia shortly after the new laws were implemented. The report also stated that negotiations for a merger are still ongoing and that such agreement would be subject to regulatory approval.
Indonesia is one of the first Southeast Asian countries to take a stand against TikTok. Following the restrictions imposed by Indonesia, Malaysia has stated that the government is investigating the prospect of regulating TikTok and its e-commerce business.
TikTok is already facing potential restrictions and investigation due to national security concerns in nations such as the United States, Europe, and India.
