Tokopedia, TikTok Shop complete backend integration

TIKTOK Shop and Tokopedia have finished integrating their systems as per merger requirements, said Melissa Siska Juminto, president of e-commerce at GoTo Group. The integration, which resulted in the Shop | Tokopedia brand, was completed as at Mar 27.

“All e-commerce activities on Shop | Tokopedia, including payments, ordering activities, and transactions are now being entirely carried out on Tokopedia’s electronic systems,” said Juminto in a statement shared with Tech in Asia.

“We have also separated social media accounts from e-commerce accounts in the TikTok application, complete with a choice of privacy settings according to user preferences.”

Aside from the payment integration between TikTok and Tokopedia, branding across the new entity’s platform – from the website’s homepage to Tokopedia’s seller dashboard – has been made consistent to the Shop | Tokopedia brand.

As Tech in Asia reported previously, TikTok needed to establish a new entity, obtain an e-commerce license from the Ministry of Trade, and create a standalone TikTok Shop app to reverse its ban in Indonesia – all of which are now fulfilled. With that, Tokopedia and TikTok Shop can now focus on execution, as GoTo CEO Patrick Walujo said in the company’s latest earnings call.

Pre-merger, TikTok Shop’s estimated Indonesia gross merchandise value (GMV) for 2023 was US$6 billion, compared to Tokopedia’s US$15.6 billion.

Juminto previously declined to disclose the post-merger GMV but said that the group is confident that they will meet “or even exceed our expectations” going forward.

For now, Indonesia’s Ministry of Trade – which has jurisdiction for issuing e-commerce regulations in the country – will audit the integration process after four months to decide whether there are still any violations. TECH IN ASIA