TikTok’s short-video app platform has confirmed engaging in initial discussions with Tiktok in Indonesian regulators regarding acquiring a payments license in Indonesia. This move aims to enhance its e-commerce activities in the crucial Indonesian market.
In June, TikTok’s President Zhou Shouzi revealed the company’s intention to invest significant funds in Indonesia and other Southeast Asian regions.
The sources, who chose to remain anonymous due to the confidentiality of the talks, stated that TikTok, owned by Chinese tech giant ByteDance, is in talks with Bank Indonesia. The Indonesian payment license is expected to facilitate local creators and sellers on TikTok’s platform.
The payment license would enable TikTok to benefit from transaction fees and position itself in direct competition with Southeast Asian e-commerce giants, Shopee (owned by Sea) and Lazada (owned by Alibaba).
TikTok boasts 125 million monthly users in Indonesia, putting it on par with Europe and closely trailing the 150 million users in the United States.
While ByteDance’s Douyin obtained a Chinese payment license in 2020, whether TikTok has secured similar grants elsewhere remains unclear. Requests for comments on the license application from ByteDance and TikTok are yet to receive immediate responses.
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