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TikTok reveals a $1.5 billion deal to relaunch the online retail industry in Java.

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The GoTo group will be able to reopen its online store in Indonesia thanks to a $1.5 billion investment made by Chinese-owned short video app TikTok on Monday, the firms said in an announcement.

TikTok will hold a controlling position in Tokopedia, the GoTo company that will be formed by the merger of TikTok Shop. “TikTok has committed to invest over US$1.5 billion in the enlarged entity over time, to provide future funding required by the business, without additional dilution to GoTo,” the company from Indonesia stated.

“TikTok, Tokopedia and GoTo will change the country’s the internet sector, producing thousands of exciting possibilities for employment over the next five years.” GoTo stated that it planned the deal to finish in 2024 and that “the strategic partnership will commence with a trial phase conducted out in full cooperation with and monitoring by the appropriate authorities.”

Days earlier, in an effort to safeguard millions of tiny enterprises, the biggest economy in Southeast Asia had outlawed social media sales. As a result of the rule, social media companies in Indonesia—the first nation in the area to take action against TikTok’s increasing prominence as an e-commerce site—can only advertise products on their platforms and cannot carry out direct transfers

Tokopedia, Shopee, and Lazada are the leading e-commerce platforms in Indonesia, but TikTok Shop has grown significantly since its 2021 launch. Based on data provided by the firm, Indonesia has 125 million users, making it the second largest worldwide market for TikTok behind the US. The sale of less expensive goods on TikTok Shop and other platforms has jeopardized offline retailers’ livelihoods, leading to calls for regulations governing social media and e-commerce, which culminated in the Indonesian ban.

With users’ data security and the company’s suspected ties to the Chinese government under heavy examination in the US and other countries in recent months, the rule was just another blow to TikTok.

some Tiktok you can watch below
@tiktok I've been WAITING for a @Bru & @Niall Horan reunion 😍 here's the full interview from #TikTokInTheMix ♬ original sound – TikTok

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