Jakarta. Tech company GoTo Gojek Tokopedia (GOTO) and social media company TikTok Indonesia are in the process of migrating their e-commerce applications, Tokopedia and TikTok Shop, following TikTok's acquisition of Tokopedia.

The formal merger of Tokopedia and TikTok Shop Indonesia under PT Tokopedia, jointly owned by GoTo and TikTok as strategic partners in Indonesia, took place in January. TikTok now holds a controlling stake of 75 percent, with an investment commitment of over $1.5 billion (Rp 24 trillion) to support Tokopedia's operations. This demonstrates TikTok's long-term commitment without further dilution of GoTo's ownership.

The Trade Ministry has given GoTo and TikTok Indonesia until April to complete the migration, a requirement mandated by Trade Minister Regulation No. 31/2023, stipulating the separation between social media and e-commerce.

In a public presentation on Wednesday, Nila Marita, GoTo's External Relations Director, stated that the integration and system migration processes have progressed well and are nearing completion.

"At present, the shopping, payment, and transaction checkout processes have been separated from TikTok's backend and are occurring within Tokopedia's backend system. We expect this process to be completed within the next 1.5 months," said Nila during the public presentation.

During the testing phase, Nila mentioned that GOTO continues to consult with relevant ministries and aligns with applicable regulations. "We strive to provide a smooth shopping experience and effective security for TikTok app users, with Tokopedia managing the electronic system and payment processes behind the scenes," she explained.

In this public expose opportunity, GoTo's CEO, Patrick Walujo, said that the partnership between TikTok and Tokopedia has positive impact on local merchants. The Tokopedia and TikTok partnership began with the Buy Local campaign launched on Dec. 12, 2023, involving thousands of local merchants.

Aggregate data from Tokopedia and TikTok merchants participating in the campaign recorded growth in local product sales of up to 125 percent, compared to September 2023.

In a survey conducted on merchants involved in the campaign, it was found that 97 percent of merchants felt a positive impact from the TikTok and Tokopedia collaboration, with 90 percent reporting increased sales through the Buy Local campaign.

"Most merchants also admitted to hiring additional employees since the collaboration began. Through these results, we believe that this combination will continue to evolve and bring significant benefits to consumers and Indonesian MSME players," said Patrick.

According to the public presentation documents, product promotions on TikTok will be managed by the TikTok system, while the product display pages, order completion (checkout), and payment pages on TikTok will be managed by Tokopedia's electronic system backend.