![Exclusive-TikTok in talks to gain Indonesian payments licence](https://i-invdn-com.investing.com/trkd-images/LYNXMPEJ7309Q_L.jpg)
By Stefanno Sulaiman
JAKARTA (Reuters) – TikTok informed Reuters it’s in early-stage talks with regulators to acquire a funds licence in Indonesia, a transfer that might additional its e-commerce ambitions in a serious market at a time when it’s underneath intensifying scrutiny within the U.S. and elsewhere.
The information follows an announcement by TikTok CEO Shou Zi Chew in June that the quick video platform would make investments billions of {dollars} in Indonesia and the remainder of Southeast Asia.
Two sources briefed on the plan stated TikTok, which is owned by Chinese language tech big ByteDance, was in discussions with Indonesia’s central financial institution and that the applying was being considered favourably.
A spokesperson for TikTok confirmed on Friday that the talks have been going down, including that an Indonesian funds licence would assist native creators and sellers on its platform.
The sources declined to be recognized because the negotiations have been confidential. A consultant for the central financial institution, Financial institution Indonesia, didn’t reply to a request for remark.
A funds licence would allow TikTok to learn from transaction charges and put it extra immediately in competitors with Southeast Asian e-commerce giants, Sea’s Shopee and Alibaba (NYSE:)’s Lazada.
TikTok has 125 million Indonesian customers per 30 days – on par with its person figures for Europe and never too far behind the U.S., the place it has 150 million.
Douyin, the Chinese language counterpart to TikTok that can also be owned by ByteDance, obtained a Chinese language funds licence in 2020. It was not instantly clear if TikTok has obtained a funds license elsewhere on this planet. ByteDance and TikTok didn’t instantly reply to a request for touch upon licences.
Indonesia, with a inhabitants of greater than 270 million, accounted for almost $52 billion price of e-commerce transactions final 12 months, in response to knowledge from consultancy Momentum Works. Of that, 5% happened on TikTok, principally by way of live-streaming, it stated.
TikTok plans to launch an e-commerce platform to promote China-made items in the US this month. It has informed Reuters it doesn’t plan to launch the service in Indonesia, the place senior officers have expressed concern that the nation might be flooded with Chinese language-made imports.
TikTok has confronted rising concern within the U.S. about potential Chinese language authorities affect over it. The White Home and plenty of U.S. state governments have banned its use on authorities gadgets and the state of Montana plans to ban it altogether from subsequent 12 months.
The corporate has acknowledged it has not shared, and wouldn’t share U.S. person knowledge with the Chinese language authorities, and has taken substantial measures to guard the privateness and safety of TikTok customers.
Australia and Canada have additionally banned using TikTok on authorities gadgets.