Indonesia's Ministry of Trade (Kementerian Perdagangan) has officially confirmed that ByteDance-owned TikTok and GoTo Group's flagship marketplace Tokopedia have completed full technical and operational compliance under Trade Ministry Regulation (Permendag) No. 31/2023. The regulatory clearance follows a comprehensive audit of the merged 'Shop Tokopedia' electronic system, verifying that all payment processing, merchant settlement, and checkout operations now run entirely within Tokopedia's licensed domestic e-commerce infrastructure.
Enacted in late 2023 to establish a level playing field in Southeast Asia's largest digital economy, Permendag No. 31/2023 prohibits social media platforms from functioning simultaneously as direct retail payment processors. Under the regulation, social-commerce operators may display promotional content and live-streamed product showcases, but actual financial transactions and customer data management must be segregated from social media algorithms.
Separating Social Media Feeds from E-Commerce Checkout Systems
Following the regulatory mandate, TikTok forged a landmark $1.5 billion strategic partnership with Indonesia's GoTo Group, acquiring a 75.01 percent controlling stake in Tokopedia while GoTo retained a 24.99 percent equity interest and ongoing gross merchandise value (GMV) revenue streams. Over the past several months, engineering teams from both companies migrated millions of merchant accounts and back-office payment gateways to ensure seamless compliance.
Trade Ministry officials noted that the regulatory framework also enforces a minimum price floor of $100 per unit on directly imported cross-border consumer goods, alongside mandatory Indonesian National Standard (SNI) and halal certifications, effectively curbing predatory pricing against local manufacturers.
“Our e-commerce regulatory framework ensures fair competition for domestic micro, small, and medium enterprises while fostering sustainable digital innovation across Indonesia.”
Empowering 21 Million Indonesian MSMEs Under Permendag 31/2023
The combined Tokopedia and Shop Tokopedia ecosystem now connects more than 21 million registered micro, small, and medium enterprise (MSME) merchants across the Indonesian archipelago, with over 90 percent of listed sellers representing domestic producers. Joint initiatives such as the 'Beli Lokal' (Buy Local) campaign and digital literacy academies in Java, Sumatra, and Sulawesi have accelerated merchant onboarding.
Analysts project Indonesia's e-commerce gross merchandise value to exceed $82 billion in 2026, cementing the country's position as the primary engine of ASEAN's digital economy while serving as a regulatory blueprint for neighboring Southeast Asian markets.
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