Behind TikTok Shop’s logistics gamble in Indonesia

When TikTok acquired GoTo Logistics (GTL) in 2024, it looked as though the social commerce company was preparing to challenge Shopee’s logistics dominance in Indonesia. Less than two years later, however, TikTok changed course.

Initially, TikTok expanded GTL, opening delivery stations, and hiring across the country after the acquisition.

But in August 2025, GTL ceased its fulfillment operations, outsourcing warehouse management to third-party logistics (3PL) providers, according to people familiar with the matter.

The move sets TikTok apart from rivals Shopee and Lazada, both of which have invested heavily in their own fulfillment and delivery networks. Instead, TikTok Shop remains reliant on 3PL providers, primarily J&T Express, as it expands across the Indonesian archipelago.

TikTok declined to comment on the story.

The timing isn’t right

Shopee began investing in SPX Express during the pandemic, as ecommerce demand surged across Southeast Asia. At the time, building logistics infrastructure yielded a quick return on investment, according to an executive at a VC firm that has invested in the logistics space.

“Five years ago, building in-house logistics made sense because the third-party players weren’t good,” says Ray Caguin, founder and CEO of Philippines-based ART Fulfillment Solutions. “They just weren’t at the level where they could perform.”

It is far more difficult to pull off the same thing today.

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Fuel prices have risen sharply due to the conflict in the Middle East, labor costs have increased across Southeast Asia, and consumers continue to expect fast deliveries despite the higher costs of providing those services.

Building an integrated logistics network also requires significant investment in warehouses, sorting centers, transportation infrastructure, software, and thousands of workers. Once built, these assets need to remain heavily utilized to justify their fixed costs.

The logistics trade-off

Uncertain Indonesia