Latest news with #Indonesians'
The Sun
2 days ago
- Sport
- The Sun
Indonesian scratch pair stuns Aaron-Wooi Yik in China Open final
INDONESIAN scratch pair Fajar Alfian-Muhammad Shohibul Fikri pulled off a stunning victory against Malaysia's Aaron Chia-Soh Wooi Yik in the 2025 China Open men's doubles final. The newly formed duo, paired just last week, dominated the match with a 21-15, 21-14 win in just 35 minutes at the Olympic Sports Centre Gymnasium. The world number two Malaysian pair struggled to counter the Indonesians' precision and control, particularly in windy conditions on Court One. Wooi Yik admitted their rivals outperformed them in shot placement and front-court exchanges. 'They controlled the shuttle very well, especially in the first three shots, which was crucial. Their style is similar to ours, but they executed better today,' he said in a BWF recording. Aaron echoed his partner's sentiments, acknowledging the Indonesians' exceptional form. 'Their shot quality was outstanding. As a scratch pair, we needed more time to adapt to their gameplay. Their run this week was god-like—they even beat the world number one,' he said. Despite the loss, Aaron-Wooi Yik remain focused on their next challenge—the 2025 BWF World Championships in Paris. Wooi Yik emphasized staying composed under pressure. 'We believe in our gameplay and training. There's still a month to prepare, and we'll take it match by match,' he said. The Malaysians have won three titles this season but fell short of adding the China Open to their tally. Meanwhile, the Indonesian pair's rapid rise signals a new threat in men's doubles badminton. – Bernama
CNA
5 days ago
- Business
- CNA
Indonesia touts ‘big, gutsy' plan for 80,000 cooperatives to help villagers, but experts flag financial risks
JAKARTA: From loans for underbanked farmers to distributing subsidised goods and food aid to poor families, millions of rural Indonesians' woes could be solved by a newly launched initiative, according to officials. These Red-White cooperatives, named after the colours of the country's national flag, will not only distribute goods subsidised by the government, like cooking oil and fertilisers, but also offer a wide range of services. While its intentions might be noble, the initiative - which comes with a 400 trillion rupiah (US$25 billion) price tag – could pose serious risks to the economy if not executed properly, analysts said. They warned that the programme could suffer the same fate as a failed Suharto-era policy, which was riddled with mismanagement and corruption practices. Based on the number of cooperatives set up, current President Prabowo Subianto's programme is nine times bigger than the country's second president's. Due to the sheer scale of the newly-launched programme and the way these cooperatives are financed, experts said Prabowo's initiative could also leave some villages trapped in a cycle of debt while state-owned banks risk having liquidity issues. 'Many cooperatives are not professionally managed and eventually collapsed because of mismanagement, mounting debt and corruption,' Achmad Nur Hidayat, an economics and public policy lecturer from the Jakarta National Development University, told CNA. Speaking at a launch ceremony for the cooperatives in Central Java on Monday (Jul 21), Prabowo said more than 80,000 of these cooperatives will operate across Indonesia over the next three months, adding that 108 are currently operational. "Each village will have a warehouse to store (people's) harvests. We will also have shops for basic necessities, along with savings and loans services,' Prabowo said. Each cooperative will also operate a small clinic and a pharmacy as well as offer transportation solutions for farmers looking to bring their goods to nearby markets, he added. HOW ARE THE COOPERATIVES FINANCED? In launching the cooperatives, Prabowo sought to explain why his government did so with a big bang. He said the cooperatives will provide rice milling services so farmers no longer need to sell their grains for cheap to private millers. Prabowo argued that there have been many cases where subsidised fertilisers ended up in the hands of brokers who resold them to farmers with huge mark-ups. There were also times when farmers had to borrow money from loan sharks because a family member fell ill. 'These (areas) are what we must address and we are addressing them with big steps,' he said, explaining why the cooperatives were launched at such a scale and in less than five months since the idea was floated in early March. 'We are a big nation, so we have to think big and have the guts to take big actions.' The cooperatives initiative is just one of a series of ambitious programmes spearheaded by Prabowo since he took office in October. In January, the president launched his signature free meal initiative, which aims to feed 83 million children, pregnant women and breastfeeding mothers with one free meal a day. Prabowo also plans to build three million houses for low-income families annually and establish 100 boarding schools for the poor every year. On Jul 1, the Finance Ministry predicted all of these programmes would cause a government deficit of around US$40 billion, or 2.7 per cent of the country's gross domestic product (GDP) by the end of 2025. Not wanting to cause further deficit, Indonesian officials decided to partially finance these cooperatives by reallocating money meant for the village fund programme, an initiative meant to support small-scale infrastructure and economic empowerment projects, which Prabowo's predecessor, Joko Widodo, initiated in 2015. Prabowo has said that the village fund programme 'does not bring the needed changes' and that money for the legacy programme should be redirected to his village cooperative initiative instead. But Zulkifli Hasan, coordinating minister for food affairs and chief of a government task force in charge of the Red-White cooperative project, said money from the village fund programme would cover only part of the initial capital needed to set up a single cooperative. Each cooperative must then apply for loans of up to 3 billion rupiah from state-owned banks to develop the many business arms these cooperatives are expected to have. Banks will scrutinise the loan applications so that they can reduce the risk of default. '(Cooperatives) will have to state how they plan to use the money, when they expect to be profitable and so on. So we are (giving loans) the right way, not the easy way,' he said at the programme's launch. Experts however warn that loan defaults among the newly built cooperatives will be high. 'It's a preposterous financing scheme,' Media Askar, a researcher from Jakarta-based think-tank Center for Economic and Law Studies (CELIOS), told CNA. For one, he said that state-owned lenders might not have enough money to lend to all 80,000 cooperatives. Indonesia's biggest state-owned lender, Bank Mandiri, for example, manages an asset of 2,400 trillion rupiah for 30.7 million customers while its smallest, Bank Syariah Indonesia, oversees 400 trillion rupiah for 19 million account holders. 'The banks' assets would be reduced to zero just by lending billions of rupiah to thousands of cooperatives,' Media said. 'And these (cooperatives) are newly established entities with zero experience, no credit history and no proof that their businesses are heading towards profitability. So the risk that they will not be able to pay back their loans is high.' If a significant number of cooperatives default simultaneously, Media said, 'it could shake the stability of the entire banking sector'. Achmad of Jakarta National Development University echoed the sentiment. "Not all of these cooperatives will be profitable, certainly not immediately. In the meantime, (the villages) will have to pay (back the loans) in instalments. If they cannot repay then it will be a disaster for these villages and the banks," he said. For the villages, Achmad added, they might see strategic assets seized by the banks if they defaulted. Meanwhile for the banks, they might face liquidity issues from these non-performing loans. HIGH RISK INVESTMENT Analysts also expressed doubts on whether the cooperatives will be well-managed, given the relatively short lead time from its inception to launch, with the Red-White cooperative programme first floated by Prabowo at a Cabinet meeting only in March. 'I doubt the government can find competent people to manage these cooperatives in such a short amount of time,' Achmad said, adding that the short timeframe also leaves little room for the government to come up with proper business models. 'Coming up with a business model that works is not easy. They must be tailored to the specific characteristics of a village, its economic potential and its people. Even then, it takes years to build the solid foundation needed for a cooperative to be profitable and sustainable.' Experts say the lack of a viable business model and the top-down nature of the programme are reminiscent of Suharto's Village Unit Cooperative (KUD) programme, which was also designed to be multi-functional rural enterprises. When it was launched in 1973, Suharto made a pledge similar to Prabowo's that the programme would cut down the middlemen, eradicate the predatory lending practices of loan sharks and ensure subsidised goods would not fall into the wrong hands. 'But because of mismanagement, debts were mounting, loans went unpaid, corruption was rampant,' Acuviarta Kartabi, an economist from Pasundan University, told CNA. Government support for the 9,000 KUDs established during the Suharto regime ended when he stepped down as president in 1998. Since then, most have declared bankruptcy or have been abandoned by their members and fallen into obscurity. Only 385 are still active today. 'Such is the risk of establishing cooperatives born out of a top-down policy. They become dependent on government incentives and support because they were born not out of people's needs and initiatives,' Acuviarta said. Prabowo has promised that his Red-White cooperatives will be closely monitored, preventing cases of embezzlement and corruption. 'Technology will allow (cooperatives) to be monitored closely. All money coming in and out (will be monitored) through technology. (Corruption involving cooperatives) will be a thing of the past,' he said. Prabowo also said that his programme 'will be the backbone of local economies' and that people will do what they can to keep their local cooperatives afloat, with or without support from the central government in Jakarta. COMPETENT PEOPLE NEEDED Despite the risks, experts and industry players believe that some of these cooperatives can thrive and have the potential to improve local economies. 'There are farmers who struggle to get bank loans because they do not have bank accounts or because they are not legal entities. The savings and lending services provided by these cooperatives can offer solutions for our members,' Muhlis Wahyudi, secretary-general of the Indonesian Poultry Farmers Association, told CNA. Muhlis said his association is also hoping these cooperatives would buy chicken meat and eggs from traditional farmers at fair and stable prices. 'Because prices fluctuate, we sometimes have to buy feed when prices are high and sell our chicken when prices are low. Many of our members went bankrupt because of this issue,' he said. Experts said in order for these cooperatives to work, the government needs to recruit people who have a good understanding of the problems faced by locals in certain areas and turn these problems into economic opportunities. 'Each village has their own unique sets of challenges and opportunities. One village might benefit more from the logistics arm of the cooperative because of how remote it is and (be) less reliant on storage facilities because the products they sell are not so perishable,' Media of CELIOS said. 'Some villages might not even need a new cooperative because they already have one born out of their own initiative that is working and thriving.' Economist Achmad echoed the sentiment. 'It takes more than the big budget and goodwill of the government to build a cooperative programme. They must be based on people's needs, run professionally and monitored closely by internal and external mechanisms,' he said. Acuviarta of Pasundan University said Prabowo should have started small to prove whether his concept actually works. 'Training cooperative officials, monitoring their performance, determining what system and business models work and which don't, making adjustments and improvements, these all take time,' Acuviarta said. 'There's no need to rush.'
CNA
5 days ago
- Business
- CNA
Indonesia touts ‘big, gutsy' plan on 80,000 cooperatives to help villagers, but experts flag financial risks
JAKARTA: From loans for underbanked farmers to distributing subsidised goods and food aid to poor families, millions of rural Indonesians' woes could be solved by a newly launched initiative, according to officials. These Red-White cooperatives, named after the colours of the country's national flag, will not only distribute goods subsidised by the government like cooking oil and fertilisers but also offer a wide range of services. While its intentions might be noble, the initiative - which comes with a 400 trillion rupiah (US$25 billion) price tag – could pose serious risks to the economy if not executed properly, analysts said. They warned that the programme could suffer the same fate as a failed Suharto-era policy which was riddled with mismanagement and corruption practices. Based on the number of cooperatives set up, current President Prabowo Subianto's programme is nine times bigger than the country's second president's. Due to the sheer scale of the newly-launched programme and the way these cooperatives are financed, experts said Prabowo's initiative could also leave some villages trapped in a cycle of debt while state-owned banks risk having liquidity issues. 'Many cooperatives are not professionally managed and eventually collapsed because of mismanagement, mounting debt and corruption,' Achmad Nur Hidayat, an economics and public policy lecturer from the Jakarta National Development University, told CNA. Speaking at a launch ceremony for the cooperatives in Central Java on Monday (Jul 21), Prabowo said more than 80,000 of these cooperatives will operate across Indonesia over the next three months, adding that 108 are currently operational. "Each village will have a warehouse to store (people's) harvests. We will also have shops for basic necessities, along with savings and loans services,' Prabowo said. Each cooperative will also operate a small clinic and a pharmacy as well as offer transportation solutions for farmers looking to bring their goods to nearby markets, he added. HOW ARE THE COOPERATIVES FINANCED? In launching the cooperatives, Prabowo sought to explain why his government did so with a big bang. He said the cooperatives will provide rice milling services so farmers no longer need to sell their grains for cheap to private millers. Prabowo argued that there have been many cases where subsidised fertilisers ended up in the hands of brokers who resold them to farmers with huge mark-ups. There were also times when farmers had to borrow money from loan sharks because a family member fell ill. 'These (areas) are what we must address and we are addressing them with big steps,' he said, explaining why the cooperatives were launched at such a scale and in less than five months since the idea was floated in early March. 'We are a big nation, so we have to think big and have the guts to take big actions.' The cooperatives initiative is just one of a series of ambitious programmes spearheaded by Prabowo since he took office in October. In January, the president launched his signature free meal initiative, which aims to feed 83 million children, pregnant women and breastfeeding mothers with one free meal a day. Prabowo also plans to build three million houses for low-income families annually and establish 100 boarding schools for the poor every year. On Jul 1, the Finance Ministry predicted all of these programmes will cause a government deficit of around US$40 billion, or 2.7 per cent of the country's gross domestic product (GDP) by the end of 2025. Not wanting to cause further deficit, Indonesian officials decided to partially finance these cooperatives by reallocating money meant for the village fund programme, an initiative meant to support small-scale infrastructure and economic empowerment projects, which Prabowo's predecessor, Joko Widodo, initiated in 2015. Prabowo has said that the village fund programme 'does not bring the needed changes' and that money for the legacy programme should be redirected to his village cooperative initiative instead. But Zulkifli Hasan, coordinating minister for food affairs and chief of a government task force in charge of the Red-White cooperative project, said money from the village fund programme would cover only part of the initial capital needed to set up a single cooperative. Each cooperative must then apply for loans of up to 3 billion rupiah from state-owned banks to develop the many business arms these cooperatives are expected to have. Banks will scrutinise the loan applications so that they can reduce the risk of default. '(Cooperatives) will have to state how they plan to use the money, when they expect to be profitable and so on. So we are (giving loans) the right way, not the easy way,' he said at the programme's launch. Experts however warn that loan defaults among the newly built cooperatives will be high. 'It's a preposterous financing scheme,' Media Askar, a researcher from Jakarta-based think-tank Centre for Economic and Law Studies (CELIOS), told CNA. For one, he said that state-owned lenders might not have enough money to lend to all 80,000 cooperatives. Indonesia's biggest state-owned lender, Bank Mandiri, for example, manages an asset of 2,400 trillion rupiah for 30.7 million customers while its smallest, Bank Syariah Indonesia, oversees 400 trillion rupiah for 19 million account holders. 'The banks' assets would be reduced to zero just by lending billions of rupiah to thousands of cooperatives,' Media said. 'And these (cooperatives) are newly established entities with zero experience, no credit history and no proof that their businesses are heading towards profitability. So the risk that they will not be able to pay back their loans is high.' If a significant number of cooperatives default simultaneously, Media said, 'it could shake the stability of the entire banking sector'. Achmad of Jakarta National Development University echoed the sentiment. "Not all of these cooperatives will be profitable, certainly not immediately. In the meantime, (the villages) will have to pay (back the loans) in instalments. If they cannot repay then it will be a disaster for these villages and the banks," he said. For the villages, Achmad added, they might see strategic assets seized by the banks if they defaulted. Meanwhile for the banks, they might face liquidity issues from these non-performing loans. HIGH RISK INVESTMENT Analysts also expressed doubts on whether the cooperatives will be well-managed, given the relatively short lead time from its inception to launch, with the Red-White cooperative programme first floated by Prabowo at a Cabinet meeting only in March. 'I doubt the government can find competent people to manage these cooperatives in such a short amount of time,' Achmad said, adding that the short timeframe also leaves little room for the government to come up with proper business models. 'Coming up with a business model that works is not easy. They must be tailored to the specific characteristics of a village, its economic potentials and its people. Even then, it takes years to build the solid foundation needed for a cooperative to be profitable and sustainable.' Experts say the lack of a viable business model and the top-down nature of the programme are reminiscent of Suharto's Village Unit Cooperative (KUD) programme, which was also designed to be multi-functional rural enterprises. When it was launched in 1973, Suharto made a pledge similar to Prabowo's that the programme would cut down the middle-men, eradicate the predatory lending practices of loan sharks and ensure subsidised goods would not fall into the wrong hands. 'But because of mismanagement, debts were mounting, loans went unpaid, corruption was rampant,' Acuviarta Kartabi, an economist from Pasundan University, told CNA. Government support for the 9,000 KUDs established during the Suharto regime ended when he stepped down as president in 1998. Since then, most have declared bankruptcy or have been abandoned by their members and fallen into obscurity. Only 385 are still active today. 'Such is the risk of establishing cooperatives born out of a top-down policy. They become dependent on government incentives and support because they were born not out of people's needs and initiatives,' Acuviarta said. Prabowo has promised that his Red-White cooperatives will be closely monitored, preventing cases of embezzlement and corruption. 'Technology will allow (cooperatives) to be monitored closely. All money coming in and out (will be monitored) through technology. (Corruption involving cooperatives) will be a thing of the past,' he said. Prabowo also said that his programme 'will be the backbone of local economies' and that people will do what they can to keep their local cooperatives afloat, with or without support from the central government in Jakarta. COMPETENT PEOPLE NEEDED Despite the risks, experts and industry players believe that some of these cooperatives can thrive and have the potential to improve local economies. 'There are farmers who struggle to get bank loans because they do not have bank accounts or because they are not legal entities. The savings and lending services provided by these cooperatives can offer solutions for our members,' Muhlis Wahyudi, secretary-general of the Indonesian Poultry Farmers Association, told CNA. Muhlis said his association is also hoping these cooperatives would buy chicken meat and eggs from traditional farmers at fair and stable prices. 'Because prices fluctuate, we sometimes have to buy feed when prices are high and sell our chicken when prices are low. Many of our members went bankrupt because of this issue,' he said. Experts said in order for these cooperatives to work, the government needs to recruit people who have a good understanding of the problems faced by locals in certain areas and turn these problems into economic opportunities. 'Each village has their own unique sets of challenges and opportunities. One village might benefit more from the logistics arm of the cooperative because of how remote it is and (be) less reliant on storage facilities because the products they sell are not so perishable,' Media of CELIOS said. 'Some villages might not even need a new cooperative because they already have one born out of their own initiative that is working and thriving.' Economist Achmad echoed the sentiment. 'It takes more than the big budget and goodwill of the government to build a cooperative programme. They must be based on people's needs, run professionally and monitored closely by internal and external mechanisms,' he said. Acuviarta of Pasundan University said Prabowo should have started small to prove whether his concept actually works. 'Training cooperative officials, monitoring their performance, determining what system and business models work and which don't, making adjustments and improvements, these all take time,' Acuviarta said. 'There's no need to rush.'
The Sun
27-06-2025
- Politics
- The Sun
Anwar and Prabowo friendship strengthens Malaysia-Indonesia ties
KUALA LUMPUR: The strong friendship between Malaysian Prime Minister Datuk Seri Anwar Ibrahim and Indonesian President Prabowo Subianto is reshaping regional diplomacy, blending personal rapport with strategic cooperation. Datuk Seri Shamsul Iskandar Mohd Akin, the Prime Minister's senior political secretary, highlighted how their bond transcends formal politics, offering a model of progressive leadership rooted in shared struggles and mutual respect. 'History shows both leaders overcame significant challenges,' Shamsul Iskandar said. 'Anwar's reformist journey included imprisonment before his rise as PM, while Prabowo rebuilt his career post-military discharge to win the presidency.' Their connection deepened when Anwar, shortly after his 2004 prison release, was invited to Jakarta for lectures titled *Anwar Sahabat Sejati* (Anwar, a True Friend). This event, Shamsul Iskandar noted, reflected Indonesians' admiration for Anwar's values of justice and friendship. The leaders' relatable demeanours—captured in viral images of warm interactions—resonate with younger generations. Anwar's formal Malay and Prabowo's modern social media presence bridge traditional politics with digital-era engagement. Their partnership has spurred tangible bilateral progress, including economic collaboration, food security, and migrant worker protections. A notable moment was Prabowo's informal Kuala Lumpur visit just to share lunch with Anwar, underscoring their genuine trust. Policies under both leaders reflect long-term visions: Prabowo's free meals programme and Danantara sovereign fund mirror Anwar's MADANI framework prioritising institutional reform and social justice. Shamsul Iskandar drew parallels to historic Malaysia-Indonesia ties, like Tunku Abdul Rahman and Soekarno's early camaraderie, hoping the Anwar-Prabowo era avoids past tensions. Grassroots collaborations, such as between youth groups AMK and GPND, further solidify people-to-people diplomacy. 'Youth involvement ensures future cooperation extends beyond elites,' he said, citing GPND's optimism about cross-border projects. Anwar's ongoing Indonesia visit, featuring youth dialogues, reinforces this inclusive approach. Concluding, Shamsul Iskandar framed Anwar and Prabowo as symbols of resilience and cultural kinship, proving politics can thrive on sincerity—a legacy now carried by engaged youth.
Business Times
05-06-2025
- Business
- Business Times
From marketplace to mess: Tokopedia unravels after merger
IT ALL started with a two million rupiah (S$158) discount. Ary Mozta, a Jakarta-based marketing executive, runs a Tokopedia shop where he sells his pre-loved electronic gadgets. In April, the marketplace offered him the above coupon, which he can use to offset seller fees. There was just one catch: he had to migrate to TikTok Shop. The request was not a surprise. After all, TikTok shelled out US$1.8 billion last year in a megadeal to acquire 75 per cent of Tokopedia, just to keep TikTok Shop running in the country. Mozta complied with the request. However, the coupon did not work, and he ended up paying the full amount of 1.3 million rupiah. On May 4, he complained to Tokopedia's customer service team. A month later, the issue has not been resolved. Mozta has since stopped selling on the platform. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Nearly 1.5 years after the deal was announced, TikTok Shop is still struggling to integrate with Tokopedia. Frustrated sellers have taken to social media to air their complaints about the process. As ByteDance remakes Tokopedia in TikTok Shop's image, merchants and employees worry it will be a hollowed-out version of its former self. Massive layoffs at TikTok Shop, possibly as soon as July, are also on the table. A TikTok spokesperson tells Tech in Asia that it is committed to 'continue investing in Tokopedia and Indonesia'. But beneath the complaints about slumping sales and logistical snags lies something deeper: a sense of loss over an e-commerce platform that was once an important part of many Indonesians' daily lives. Mozta wrote in a LinkedIn post that he 'barely recognises the place'. Here's where the cracks started to show. The quiet toll on one merchant One of TikTok Shop's tweaks? Auto-accepting orders. Not a simple adjustment for Agus Mulyono. He has run a business card-focused print shop on Tokopedia since 2016. Previously, sellers could manually accept orders, giving them time to check inventory or, in Mulyono's case, confirm whether a customer's file was ready for printing. With auto-accepting orders, merchants must cancel manually, risking hits to their ratings. Mulyono's cash flow is also feeling the squeeze. Tokopedia used to release funds two days after delivery, assuming that most buyers rarely hit the 'confirm' button and had received their orders in good condition. But that grace period has quietly stretched up to six days for non-integrated merchants, while integrated ones get three days. Free delivery promos can further complicate matters. Previously, sellers could opt out of offering free delivery. Now, it's mandatory: all Tokopedia Plus members automatically get free shipping, whether sellers like it or not. 'If you are a buyer, of course you are happy, because you can buy something for 10,000 rupiah and still get free delivery,' said Mulyono. Free delivery promos also lead to another issue. Tokopedia sellers often have preferred third-party logistics (3PLs) providers, based on hard-earned experience. Mulyono, for example, stands by local player JNE. It's not the cheapest option, but it's consistently reliable. But sellers cannot choose free delivery couriers – Tokopedia does, based on its own priorities such as cost. Sellers can end up getting stuck with 3PLs that offer lower service levels, like slow pickups or late deliveries. Mulyono's store sits in a bustling part of Jakarta, so orders are typically picked up the same day or the next. But lately, some have sat untouched for up to two days before a courier shows up. Not having free rein on couriers can cause friction with Mulyono's customers, who often need business cards on short notice. But more often than not, customers will choose free delivery promos. Sidelined sellers, silent layoffs One early red flag for Mulyono came in 2024, when Tokopedia laid off its account managers, including the one he'd worked with. 'From then on, they only provided account managers to national brands such as Unilever,' he said. Tech in Asia understands that non-major brands can still qualify for account managers, but smaller 'homemade' stores – even those with official store status – were generally cut off. The result: smaller merchants feel sidelined while big brands get top billing. Mulyono saw it firsthand while juggling multiple 3PLs. 'Large brands typically use an e-commerce enabler to handle their e-commerce orders, so this isn't an issue for them,' said a current Tokopedia executive. 'But MSMEs don't have the resources to send packages to multiple 3PLs every day.' TikTok Shop is also rumoured on social media to be planning the shutdown of Dilayani Tokopedia, a fulfilment service that gave MSME sellers outside Java access to warehouses and cheaper shipping. Focusing on MSMEs should be a no-brainer for a company with Tokopedia's DNA. But the integration has left not just small merchants but also the company's own staff feeling sidelined. It's understood that ByteDance, as a global platform, makes strategic calls from its Singapore headquarters and rolls them out top-down. That includes Tokopedia ads, now folded into TikTok Shop's system. Sellers who want to run campaigns on the platform now have a steeper budget requirement of at least 500,000 rupiah. The focus now is 'maintenance mode', as in doing business as usual instead of innovating, says one former employee. Resources such as marketing budgets are mostly funnelled to TikTok Shop. 'This has made many employees demotivated,' said the former employee. 'We are less involved in the discovery stage of an initiative and mostly only handle the execution part.' Layoffs were inevitable. Beyond the 2024 cut of account managers, employees say the hits kept coming, quietly, and more often than the headlines suggest. 'The mass layoffs happened with [junior level] employees at the beginning,' says the current Tokopedia executive. In some divisions, as much as half the team was let go, the person adds. Some cuts come disguised as performance reviews, suggests the executive. Affected employees often walk away with severance worth about 1.5x their tenure, though the amount can vary. 'In terms of morale, many are already tired and are just waiting for the golden handshake,' said the current executive, referring to the severance package. 'Chances for career advancements are almost nonexistent, and many high-level employees and leaders are also set to be cut.' A TikTok spokesperson says the company 'routinely evaluates business needs and makes adjustments,' but they declined to share how many have been retrenched since the integration. Where TikTok takes Tokopedia now Shopee now dominates Indonesia's e-commerce scene by a wide margin, according to estimates by market intelligence firm Sensor Tower. Tokopedia has slipped behind Lazada as of the first quarter of 2025. However, according to data on the Tokopedia app, Tokopedia and TikTok Shop together serve 200 million consumers. Since TikTok Shop is not a standalone app, this figure likely reflects TikTok's total user base in Indonesia. SOURCE: SENSOR TOWER ESTIMATES There's some concern around anti-competition, but it's not a deal-breaker – as long as Shopee, Lazada, and Blibli are still in the game, says Heru Sutadi, executive director at the Indonesia ICT Institute and a former commissioner at the country's consumer protection agency. KPPU, the Indonesian commission handling competition laws, recently raised concerns over the TikTok-Tokopedia deal, citing a 'significant increase in market concentration', among other things. One 'proactive measure,' Sutadi says, is blocking TikTok Shop from selling its own goods on the platform – a response to TikTok's Project S test run in 2023. Sentimentality aside, Tokopedia has plenty to learn from ByteDance. The former employee admits the Chinese giant is 'far more advanced', with deeper talent, a stronger tech stack, and far bigger bets on R&D. Still, both Mozta and Mulyono agree that nothing today matches what Tokopedia was in its prime: a homegrown marketplace built for Indonesia. 'Maybe TikTok offers automation, or is faster and cheaper. But if that means sacrificing some parts of our 'local wisdom' or what made the business successful, it's very unfortunate,' Mulyono said. He's still selling with Tokopedia, at least for now. Could TikTok Shop actually retire the Tokopedia brand? Unlikely, say employees – the reputation risk far outweighs the reward. 'I see all this as a pure business decision,' said the former employee. However, 'it's sad to see [TikTok Shop] slowly tone down a company that we were so proud of.' TECH IN ASIA
