Is a comeback story in the cards for TikTok Shop in Indonesia?

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Hello reader,

Remember the Thanos snap from Avengers: Infinity War a couple of years ago? I watched the movie in the cinema on opening night and couldn’t believe what I saw.

It was the first time we saw the Marvel Cinematic Universe’s protagonists not only lose but lose hard. I like to think the film is this generation’s Empire Strikes Back.

I remember the stillness around me as characters like Spiderman and Groot got “dusted.” It was like being deep underwater: An invisible pressure enveloped the theatre as people fell deathly silent as if it were impossible to make any noise at all, not even a squeak.

Of course, we all know who won in the end. Marvel’s heroes came back stronger than ever and set things right – but not without some tearful sacrifices along the way.

In the real world, many are wondering whether TikTok Shop could pull off a similar win in Indonesia after it was abruptly “snapped” by new regulations prohibiting ecommerce transactions on social media platforms. The ban is aimed at protecting local merchants from what the government says are monopolistic practices and predatory pricing, among other issues.

Each side probably has its own view and way of handling the situation. Let’s look at how TikTok is assembling the building blocks of a potential comeback.

Today we look at:

• Whether TikTok Shop can return from the dead in Indonesia
• The top 20 angel investment networks in Asia
• Other newsy highlights such as OpenAI’s new interim CEO and ecommerce enabler Unicommerce’s IPO prep.

Premium summary

Code Name: Lazarus?

Image credit: Timmy Loen

Resurrection or revival is a common storytelling trope – I mean, the world’s biggest religion is basically centered around it! It speaks to our human fascination with the concept of triumphing over impossible odds. If TikTok can figure out the right formula to bring its ecommerce business back to life in Indonesia, then I’d be mighty impressed.

• Where are the captains?: Despite setting up its global headquarters in Singapore, the short-video platform has not appointed country directors or CEOs for each of its markets in Southeast Asia.
• Round two: This isn’t the first time that TikTok has gotten into regulatory hot water in Indonesia. It was banned in 2018, but the move was short-lived. Days after being blocked, executives from the platform and its parent firm ByteDance flew to Jakarta to make its case with the government.
• Allies: At the moment, TikTok has not decided whether it will build a separate ecommerce app for Indonesia in compliance with the new rules. However, it’s possible that TikTok could take another path to resurrection: a tie-up with local super app GoTo, which owns ecommerce player Tokopedia.

Angelic presents

By popular demand – RFM returns to HCMC!

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