According to data provided by Indonesia's Ministry of Communications and Information Technology, the number of TikTok users in Indonesia has continued to grow over the past three years and is now more than 1100 million people, second only to the United States, ranking second in the world. This huge user base offers huge potential business opportunities for TikTok Shop's e-commerce industry in Indonesia.
However, TikTok's e-commerce development in Indonesia has not been all smooth sailing.
The closure and return of TikTok Shop in Indonesia
Early July to August 2023Indonesia's minister Zulkifli Hasan has said in multiple public forums that Indonesia is considering restricting social e-commerce like TikTok Shop from bringing goods directly from their home country.
September 2023, Indonesia issued the Ministerial Regulation No. 31 of 2023 (reg 31 2023), which clearly stipulates that social media platforms are not allowed to conduct direct sales.
October 4, 2023, TikTok shut down its e-commerce business in Indonesia.
December 11, 2023, TikTok officially announced the establishment of a strategic partnership with Indonesian GOTO, and TikTok e-commerce returned to Indonesia.
TikTok's redeployment in Indonesia has injected new vitality and opportunities into the Indonesian e-commerce market.
According to COMPAS statistics, FMCG sales on the Tokopedia platform increased by 214 percent during the 12.12 promotion in 2023, reaching an average daily sales of IDR 47 billion to IDR 69 billion. Also between December 12 and 19, 2023, the number of FMCG orders on the TikTok Shop platform reached a staggering 2 million, and sales reached IDR 193 billion. It fully proves the strong strength and huge influence of TikTok Shop in the Indonesian e-commerce market.
The continuous growth of TikTok Shop has not only brought prosperity to the Indonesian market, but also provided great business opportunities for global sellers.
According to reports, stimulated by TikTok Shop's policy dividends, the overall revenue growth of sellers is quite optimistic. From January to November 2023, 71% of sellers said that their revenue increased compared with the same period in 2022, 15% of sellers' revenue was the same as that in 2022, and only 14% of sellers said that their revenue declined. TikTok's huge traffic pool and strong ability to carry goods make it a popular platform for sellers.
Looking ahead, TikTok Shop has set a GMV target of $50 billion in 2024, and plans to launch in Latin America and other regions, and its global influence will be further expanded.
This is not only TikTok's ambition, but also an opportunity for countless sellers to burst orders. With the continuous expansion of the market and the continuous prosperity of e-commerce business, TikTok will continue to be an important force to promote the development of overseas e-commerce markets. For major sellers, seizing the opportunity of TikTok will be the key.