Jakarta. Indonesia is considering policy measures to curb the growing dominance of Chinese products and platforms in its digital marketplace ecosystem, following the integration of Tokopedia with TikTok Shop.

Finance Minister Purbaya Yudhi Sadewa said on Saturday that the government is assessing ways to prevent domestic e-commerce platforms from being overtaken by foreign interests, particularly those linked to China.

“If this continues without intervention, it would be as if we are handing over our domestic market directly to China,” Purbaya told reporters after Eid prayers in Jakarta.

Concerns have intensified since Tokopedia, one of Indonesia’s largest marketplaces, came under majority ownership of ByteDance, the Chinese technology company behind TikTok. The firm acquired a 75% stake in Tokopedia in 2023 for more than $1.5 billion and has since integrated the platform with TikTok Shop.

The move marked a significant shift in Indonesia’s e-commerce landscape, especially after TikTok Shop had previously been banned for operating beyond its license as a social media platform.

Purbaya said he has received numerous public complaints regarding the increasing prevalence of low-cost imported goods from China across local platforms.

The government is now formulating strategies to ensure a more balanced digital trade ecosystem, aiming to strengthen competition between domestic and imported products while safeguarding national economic interests.

“We want to encourage local businesses so that domestic products can compete and regain prominence in our marketplaces,” he said.

The Tokopedia–TikTok integration is expected to intensify competition in Indonesia’s e-commerce sector, posing a challenge to Shopee, which currently holds around 50% market share. The Singapore-based platform has maintained its dominance through aggressive pricing, live shopping features, and fast delivery services across Southeast Asia.

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