GOTO Shares Actually Drop 12.96 Percent After Being Tempted By TikTok IDR 23 Trillion

Illustration (Photo: Doc. Antara)

JAKARTA - The share price of PT GoTo Gojek Tokopedia Tbk (GOTO) closed in the red zone at the close of the first trading session Monday, December 11, 2023.

GOTO's share price fell 12.96 percent to IDR 94 per share after the company announced a strategic partnership with TikTok and Tokopedia in the morning.

Launching RTI data, GOTO shares opened at IDR 109. Meanwhile, GOTO shares are at the highest level at IDR 110 and the lowest IDR 92 per share. And 19.75 billion shares have been transacted, with a frequency of 115,364 times, and a transaction value of IDR 1.97 trillion.

Previously, PT GoTo Gojek Tokopedia Tbk (GOTO) and TikTok established strategic partnership cooperation to strengthen Indonesia's digital economy growth. This collaboration will focus on empowering and expanding the market for national MSME players.

As part of this strategic partnership, the Tokopedia and TikTok Shop Indonesia businesses will be combined under Tokopedia, where TikTok will have control over Tokopedia.

On the other hand, TikTok will invest more than $1.5 billion, as a long-term commitment to supporting Tokopedia's operations, without further dilution on GoTo's ownership in Tokopedia.

Through this agreement, TikTok and GoTo can expand the benefits for Indonesian MSME users and actors.

Tokopedia's business growth after being combined with TikTok Shop Indonesia will bring benefits to GoTo, which will remain an ecosystem partner for Tokopedia, including reaching a wider market with digital financial services through GoTo Financial and on-demand services from Gojek.

In addition, GoTo will also receive revenue from Tokopedia in line with the company's scale and growth.

This strategic partnership will begin with a trial period carried out by consultation and supervision from the relevant ministries and institutions.

Furthermore, the program that will be launched during this trial period is the Beli Lokal campaign starting on December 12, 2023, coinciding with National Online Shopping Day (Harbolnas), an initiative of the Indonesian government aimed at encouraging digital economic growth through the empowerment of local MSMEs.

In the future, TikTok, Tokopedia, and the GoTo Group are committed to providing wider benefits for MSME players in Indonesia by utilizing the e-commerce platform, and encouraging the creation of millions of new jobs in the next five years.

With the merger of the two businesses, more than 90 percent of merchants are MSME players.

The MSME players will get support through various programs from TikTok, Tokopedia and GoTo Groups.

The transaction is expected to be completed in the first quarter of 2024. This agreement is in line with the GoTo Group's move to strengthen the Company's financial position and strategy to expand the total addressable market coverage.