Indonesia’s GoTo and TikTok to adhere to in-app transaction ban
- GoTo and TikTok will be compliant with Indonesia rules by April
- In-app transactions on social-media platforms will be banned
- GoTo’s merger with Tokopedia is nearing completion
- GoTo will receive quarterly e-commerce service fees from Tokopedia
- TikTok holds a 75% controlling stake in Tokopedia
Indonesia’s GoTo and Bytedance’s TikTok have announced their commitment to becoming fully compliant with a regulation that prohibits in-app transactions on social-media platforms in the country. The process is expected to be completed within the next 1.5 months, according to GoTo Chief Executive Patrick Walujo. GoTo’s merger with Tokopedia is also nearing completion, and the company will receive quarterly e-commerce service fees from Tokopedia based on a percentage of its gross merchandise value. TikTok, which holds a 75% controlling stake worth $840 million in Tokopedia, will benefit from this partnership after Indonesia banned e-commerce transactions on social-media platforms last year. As a result of these developments, GoTo’s shares closed 6.25% lower at 75.00 rupiah on Wednesday.
Factuality Level: 7
Factuality Justification: The article provides information about GoTo and Bytedance’s compliance with a regulation in Indonesia regarding in-app transactions on social media platforms. It includes quotes from GoTo’s Chief Executive and details about the merger between Tokopedia and TikTok Shop Indonesia. The article seems to stick to the main topic without significant digressions or irrelevant information. However, it could benefit from more context about the regulation and its implications.
Noise Level: 3
Noise Justification: The article provides relevant information about GoTo and Bytedance’s compliance with a regulation in Indonesia, the impact of the merger on Tokopedia, and the financial implications for GoTo. However, the article lacks depth in analysis, does not explore broader implications or consequences, and does not provide actionable insights for the reader.
Financial Relevance: Yes
Financial Markets Impacted: Indonesia’s financial markets and companies impacted
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to financial topics as it discusses the compliance of GoTo and TikTok with a regulation banning in-app transactions on social-media platforms in Indonesia. It also mentions the impact on GoTo’s shares. However, there is no mention of an extreme event.
Public Companies: GoTo (N/A)
Private Companies: Bytedance
Key People: Patrick Walujo (Chief Executive of GoTo)
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