TLDRs;
- TikTok fined US$898K by Indonesia’s KPPU for late notification of Tokopedia acquisition.
- Acquisition of 75% stake in Tokopedia required filing by March 19, but TikTok missed the deadline.
- Recent Tokopedia layoffs affecting 420 staff highlight post-merger restructuring and operational overlaps.
- Combined TikTok-Tokopedia entity now controls over one-third of Indonesia’s e-commerce market, raising competition concerns.
Indonesia’s competition watchdog has imposed a significant penalty on TikTok, fining the social media giant 15 billion rupiah (about US$898,000) for failing to promptly disclose its acquisition of a majority stake in Tokopedia, the country’s leading e-commerce platform.
The sanction was handed down by the Commission for the Supervision of Business Competition (KPPU) during a hearing in Jakarta on Monday, marking a rare but firm response to regulatory noncompliance in Indonesia’s fast-expanding digital economy.
Fine Follows Tokopedia Merger Deal
TikTok, through its Singapore-based entity TikTok Nusantara (SG) Pte. Ltd., completed its acquisition of a 75.01% stake in Tokopedia earlier this year. The remaining shares stayed with GoTo, one of Indonesia’s biggest tech holding companies.
Under Indonesian law, any acquisition that meets certain thresholds must be reported to the KPPU within 30 business days after the deal takes legal effect.
In this case, the January 31, 2024, merger triggered a filing deadline of March 19. However, TikTok admitted during the hearing that it had failed to meet this reporting obligation on time.
Cooperation Softens the Blow
While the fine represents a notable financial penalty, KPPU highlighted TikTok’s cooperative stance throughout the process.
The company acknowledged its delay, fully complied with the hearing, and had no prior violations on record. These factors contributed to what regulators considered a “measured” sanction rather than a more severe outcome.
TikTok must now pay the penalty within 30 days of the decision becoming legally binding. Industry observers note that while the fine is relatively small compared to TikTok’s global revenues, it underscores the increasing scrutiny tech giants face in Indonesia, especially when major acquisitions reshape market dynamics.
Layoffs Deepen Spotlight on Integration
The sanction comes just weeks after TikTok confirmed significant workforce reductions at Tokopedia. In two rounds between July and August 2025, about 420 employees, roughly 14–16% of the company’s staff, were laid off.
A TikTok spokesperson said the cuts were driven by an evaluation of “team size and business needs” following the merger.
The layoffs affected overlapping roles in logistics, operations, and marketing, changes that analysts described as standard “synergy realization” in large tech mergers. Even with the cuts, the combined entity still employs around 2,500 people in Indonesia, signaling ongoing investment despite restructuring pains.
Consolidation Raises Market Questions
The merger has reshaped Indonesia’s e-commerce landscape, giving TikTok Shop and Tokopedia a combined foothold that challenges regional leader Shopee. TikTok Shop’s market share more than doubled in a year, climbing to over 27%, while Tokopedia slipped below 10%. Together, the merged platforms now control more than a third of Indonesia’s e-commerce market.
Such consolidation has drawn the attention of regulators and industry players alike. While KPPU’s fine focused on reporting delays, the broader issue of competition remains in play, as policymakers weigh the risks of monopolistic behavior against the benefits of digital growth.
