Edri livestreams from his shop in Pasar Tanah Abang, a famous textile market in Jakarta, Indonesia, on Aug. 21, 2024. Edri said his sales on TikTok Shop had been lower since the service restarted. JAKARTA, Indonesia — A year ago, TikTok’s e-commerce business in Indonesia was thriving. With its viral videos, TikTok had become a worldwide phenomenon, and it was translating its influence into a powerful new revenue stream by letting users buy and sell things while its videos played.
The government’s edict did not name TikTok. It didn’t need to. No other app blended social media and e-commerce the way TikTok did. TikTok wanted Shop back online by Dec. 12, according to two people familiar with the discussions who were not authorized to speak publicly.Ex-Nuggets player says lawyer’s “betrayal” cost him his creperie, cash and life story
TikTok Shop restarted as a pilot program under government supervision on Dec. 11. As it had before, Shop appeared as a tab within the TikTok app. But now it was decked out with Tokopedia’s logo and signature green branding. GoTo kept just under a quarter of Tokopedia’s shares, and was promised a cut of profits from future TikTok Shop sales. TikTok paid $840 million and said it would invest further, up to a total of $1.5 billion, in the combined entity.
The government said its new rules for e-commerce were intended to protect small businesses. But the businesses that sold goods on TikTok Shop were caught off guard by the sudden interruption. Some struggled to get by without income they relied on. Edri, who like many Indonesians goes by only one name, has a stall on the fifth floor of Jakarta’s Pasar Tanah Abang, the largest textile market in Southeast Asia. He said he was selling about 30 pairs of jeans a day on TikTok Shop these days — down from about 100 before the shutdown last October. Edri said it had become harder to attract viewers to his livestreams, which he taped among neatly folded piles of denim while his assistant smoked clove cigarettes off camera.
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