Comply With Regulations, TikTok Shop And Tokopedia Collaboration Profits MSMEs And The Digital Industry

Illustration. (Photo: Doc. Antara)

JAKARTA - TikTok Shop and Tokopedia have finally completed their commitment to implementing government regulations related to the integration process of the two platforms. The Ministry of Communication and Information Technology (Kominfo) assesses that the integration of the two digital platforms will protect micro, small and medium enterprises (MSMEs) in the country and benefit the development of the digital industry in Indonesia.

Director General of Information and Public Communication of Kominfo Usman Kansong said the joining of TikTok Shop with Tokopedia is a form of compliance with regulations issued by the government. To protect MSMEs in the country, the Government has banned social media from facilitating buying and selling transactions and payment transactions.

"The merger of TikTok Shop to Tokopedia is to protect our MSMEs or domestic products. The goal is indeed that. So, our MSMEs should be protected," said Usman in his statement in Jakarta, quoted Thursday, April 25.

As of March 27, the process of migrating and integrating the TikTok Shop system to Tokopedia has been completed 100 percent. Thus, the process of facilitating TikTok Shop payment transactions is now being carried out on the Tokopedia electronic system. So people who click the TikTok Shop icon will automatically enter the Tokopedia domain.

According to Usman, TikTok is a popular social media platform with very many users. On the other hand, Tokopedia is a domestically made original e-commerce platform. Therefore, the completion of the integration of TikTok Shop and Tokopedia will make MSMEs in Indonesia protected from flooding in imported products. That way, sales of MSMEs and domestic products are expected to increase.

Based on public exposure of PT GoTo Gojek Tokopedia Tbk (GOTO) at the end of February, TikTok has around 125 million monthly active users in Indonesia. Meanwhile, based on Monthly Active User (MAU) data on Android, iOS and Unique Visitor applications, Tokopedia users reach more than 100 million users. Thus, the integration of TikTok Shop and Tokopedia has the potential to reach hundreds of millions of users active monthly in the country.

Furthermore, Usman said, the collaboration between TikTok Shop and Tokopedia will also benefit the digital industry in the country. The cooperation between the two digital giants will spur the development of start-ups in Indonesia and encourage the nation's children to develop the digital industry.

Broadly speaking, according to Usman, collaboration between digital platforms such as TikTok Shop and Tokopedia will have a positive impact on the Indonesian economy. So far, the actors have a high passion for building digital technology. Therefore, Kominfo always encourages players in the digital industry to grow and adjust to the regulations that have been made.

"In essence, the government wants to protect the domestic industry so that it competes in a healthy and not reckless manner with foreign digital industries," added Usman.