TikTok mulls ecommerce deals with Blibli, Bukalapak, Tokopedia: Indonesia minister

TikTok logo / Photo credit: 123rf

TikTok is in discussions with Indonesian ecommerce players on potential partnerships that may revive its ecommerce ambitions in the archipelago, Teten Masduki, the country’s minister for SMEs, said in an interview with Reuters. 

The social media platform has held talks with companies including Blibli, Bukalapak, and Tokopedia, the minister added.

Tokopedia declined to comment when pressed by Reuters, while Blibli did not immediately respond. A Bukalapak representative said the company was not aware of such discussions.

Indonesian President Joko Widodo had tasked Masduki to create regulations for ecommerce players. The minister is set to meet with TikTok CEO Shou Zi Chew later this month.

Indonesia’s Ministry of Trade earlier this year prohibited social media platforms from offering direct ecommerce transactions on their respective apps.

This prompted companies like Meta, YouTube, and TikTok to apply for ecommerce licenses in the country.

In October, TikTok Shop announced that it would “no longer facilitate ecommerce transactions” on the app. While users have since adjusted by adding links to their Shopee and Lazada storefronts to their accounts, sales have already declined.

TikTok has good reason to pursue an ecommerce recovery in the country. While ecommerce contributes a relatively lower amount to the company’s revenue in Southeast Asia, TikTok Shop has been rapidly rising.

See also: Anatomy of a comeback: Can TikTok resurrect its ecommerce biz in Indonesia?