GoTo, TikTok to Be Compliant With Indonesia Rules by April
By Kimberley Kao
Indonesia's GoTo and Bytedance's TikTok will be fully compliant with a regulation that bans in-app transactions on social-media platforms in the country before the end of April, GoTo said Wednesday.
GoTo Chief Executive Patrick Walujo, speaking a month after the merger of his company's Tokopedia e-commerce arm and TikTok Shop Indonesia, said at a business update that "the process is nearing completion, and is expected to be fully completed within the next 1.5 months."
GoTo also said that it will receive quarterly e-commerce service fees from Tokopedia on a sliding scale based on a percentage of its gross merchandise value, adding that fees will contribute immediately to GoTo's cash flow.
"Our ownership of Tokopedia will not be further diluted," he said. TikTok holds a 75% controlling stake worth $840 million in Tokopedia.
Indonesia last year banned e-commerce transactions on social-media platforms, dealing a blow to TikTok's sales ambitions in the populous country until the tie-up with GoTo.
GoTo's shares closed 6.25% lower at 75.00 rupiah on Wednesday.
Write to Kimberley Kao at kimberley.kao@wsj.com
(END) Dow Jones Newswires
February 28, 2024 06:37 ET (11:37 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
What to Invest in During High Inflation
-
Never Mind Market Efficiency: Are the Markets Sensible?
-
Starbucks Stock Could Use a Pick-Me-Up After Big Selloff; Is it a Buy?
-
5 Cheap Stocks to Buy From an Attractive Part of the Market
-
Markets Brief: All Eyes On Inflation
-
5 Things We Learned From the Q1 Earnings Season
-
After Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
What’s Happening In the Markets This Week
-
Cisco Earnings: Positive Guidance and Splunk Inclusion Align With Our Long-Term Thesis
-
3 Warren Buffett Stocks to Buy After Berkshire Hathaway’s Just-Released 13F Filing
-
Going Into Earnings, Is Nvidia Stock a Buy, a Sell, or Fairly Valued?
-
After Earnings, Is Arista Stock a Buy, a Sell, or Fairly Valued?
-
A Cheap Dividend Aristocrat to Buy Before It Bounces Back
-
Alibaba Earnings: More Positive Outlook Despite Mixed Results
-
After Earnings and a 56% Rally In 2024, Is Arm Stock a Buy, a Sell, or Fairly Valued?
-
How Morningstar Rates Stocks