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)

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