How TikTok and Tokopedia plan to elevate the future of retail in Indonesia post-partnership

In 2023, TikTok suspended its online shopping service in Indonesia as a result of the country's decision to ban all eCommerce transactions on social media platforms.

Through a strategic partnership with GoTo group in early 2024, Tokopedia - the group's technology company specialising in eCommerce - and TikTok Shop Indonesia's businesses, officially combined under the Tokopedia entity which is now jointly owned by GoTo and TikTok as strategic partners in Indonesia.

Under the combined Tokopedia entity, TikTok holds a controlling stake, according to GoTo in a statement at the time.

The integration and migration of the two apps was completed in February after a trial period which was done in consultation with the relevant ministries and in line with prevailing regulations.

With TikTok re-entering the market, MARKETING-INTERACTIVE decided to sit down with Aditia Grasio Nelwan, head of communications at Tokopedia to talk about TikTok and Tokopedia's plans for the coming year in Indonesia. 

For a start, Tokopedia’s collaboration with TikTok aims to empower local MSMEs in Indonesia and provide greater opportunities for its partners to serve Indonesian communities, including buyers, in even greater
numbers, according to Nelwan . 

In addition, the two entities will be undertaking "a series of joint initiatives to further support local MSMEs in Indonesia", said Nelwan. 

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This includes a holistic program focusing on skills development and providing resources related to upstream production and selling, supporting merchants in areas such as marketing, branding and sustainable business practices and helping local brands to promote their products in international markets.

Leveraging the partnership 

In providing greater opportunities for MSMEs and to serve the Indonesian community, TikTok Shop and Tokopedia has also launched numerous campaigns leveraging the partnership. 

One such recent campaign is the "Beli Lokal" ("Buy Local") campaign. Launched during last year's 12.12 National Online Shopping Day, the campaign made it easier for Indonesians to shop online for locally-made products, said Nelwan. 

"The 'Buy Local' campaign can be found on both Tokopedia and TikTok's app, so that local businesses, including MSMEs can expand their reach across Indonesia," he added. 

Another joint effort was the recently undertaken was the "#MelokalDenganBatik" ('Go Local with Batik') campaign. The campaign was a continued effort to support local products, especially batik. 

During the campaign period, Indonesians could find and purchase batik from local MSMEs through the dedicated #MelokalDenganBatik page inthe shop tab. 

"This campaign is in line with the government's efforts to sustain the tradition of wearing batik among Indonesians," said Nelwan. Adding that it continuously collaborates with the government to hold MSME workshops and trainings in various cities across the country.

These workshops, according to Nelwan, is part of Tokopedia and TikTok's efforts to help MSME's upscale their skills and business development. In addition, these workshops and trainings encompass several relevant topics including business strategies to tips and tricks on boosting sales strategies in Tokopedia and Shop | Tokopedia. 

Outside of the partnership, the two entities have also tapped into collaborations to empower local MSMEs. Most recently, Tokopedia and TikTok launched its "Ramdan Ekstra Seru" ('Extra Fun Ramadan') campaign where it aimed to make it easier for Indonesians to shop for their Ramadan needs more efficiently. 

Similar to the "Beli Lokal" and "#MelokalDenganBatik" campaigns, the "Ramadan Ekstra Seru" campaign could be accessed by users both on the Tokopedia app and site, as well as on Shop | Tokopedia on the TikTok app. 

"Through various collaborations and innovations that have been done together, TikTok and Tokopedia hope to make a positive contribution to the local MSME ecosystem, create an environment that supports business growth, and ultimately, make local MSMEs the first choice for Indonesian people," said Nelwan. 

The rise of livestreaming

The emergence of live streaming in the market is also a dimension that TikTok and Tokopedia are eyeing in 2024. 

"As live streaming becomes a more familiar activity amongst Indonesians, this emerging dimension simultaneously brings new opportunities for local businesses, including MSMEs, to enable their customers to interact with, be entertained by, and experience their brands," said Nelwan. 

Lastly, the two entities have introduced various efforts ranging from workshops and trainings for Indonesian MSMEs to help them upscale their skills and business capacity. This includes how to create content and leveraging live-streaming on TikTok to market their shop and product.

As a platform, we continuously try to innovate and support these evolving sellers.

This is especially the case for Indonesian MSMEs so that they can always be in conjunction with consumer preference, said Nelwan. This will eventually help increase their sales on Shop | Tokopedia, he added. 

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