TikTok Plans to Invest $12.2 Million to Develop Small and Medium Enterprises in Indonesia

- 15 June 2023 21:19 WIB
Illustration. TikTok logo.
Illustration. TikTok logo.

JAKARTADAILY.ID – TikTok, the popular short-form mobile video app, has announced its intention to invest $12.2 million in assisting over 120,000 small and medium enterprises (SMEs) in Indonesia to transition into the online business realm and partake in the digital economy.

This investment will encompass cash grants, digital skills training, and advertising credits for SMEs, including micro-businesses in rural areas and on the outskirts of cities.

TikTok, as both a business-supporting platform and a creative outlet, is playing a significant role in facilitating this investment. A report titled "The TikTok Effect: Growing Business, Developing Education, and Empowering Communities in Southeast Asia" reveals that nearly 50% of the surveyed SMEs experienced increased revenues by selling their products and services on TikTok.

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Furthermore, 79% of these businesses have successfully transitioned from offline marketing channels to online ones using TikTok. Moreover, more than 80% of TikTok creators surveyed reported a rise in revenue through various opportunities, including TikTok LIVE and branded content collaborations.

In Southeast Asia, over 325 million people have access to TikTok every month, and 15 million businesses have joined the platform. TikTok recognizes its substantial role in expanding economic opportunities, fostering education, and contributing to community development in the region and beyond.

Shou Cew, TikTok's Executive Officer, expressed enthusiasm about the positive impacts already seen from TikTok and reiterated the company's commitment to supporting individuals, communities, and businesses in their growth endeavors.

TikTok's Commitment to Southeast Asia

Under its Local Support program, TikTok aims to empower micro and small businesses, particularly those in rural areas, with knowledge of social media marketing.

Over the next three years, TikTok will collaborate with more than 25 government institutions and nonprofit organizations throughout Southeast Asia. Through this program, businesses will gain access to cash grants, digital skills training, and advertising credits, allowing them to reach new digital consumers.

In an effort to explore the impact of TikTok in Southeast Asia, Kadence International conducted a survey in nine markets across the region. The survey involved over 3,400 TikTok users and 25 nonprofit organizations and employed a mixed methodology, including online surveys and offline interviews. The survey, conducted between August and September 2022, aimed to gather valuable insights into the platform's influence.

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Additionally, TikTok has formed partnerships with the Tourism and Creative Economy Ministry, the Association of Women Resource Development Center, the Social Business Platform, and Telkom in Indonesia. Together, they will launch TikTok Jalin Nusantara, an initiative focused on developing internet connectivity in community centers across nine villages in East Nusa Tenggara and North Sumatra.

In addition to strengthening local digital infrastructure, TikTok Jalin Nusantara will provide training programs in these villages and five creative centers situated in prominent tourism destinations and creative hubs supported by Telkom. The program will offer digital literacy training, financial literacy education, and essential digital skills modules such as content creation, e-commerce, and digital marketing, encouraging communities to actively participate in the digital economy.


Editor: Suksmajati Kumara


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