TikTok to Invest Billions for Digital Economy in Southeast Asia
- Misrohatun Hasanah
Jakarta – TikTok announced a multi-million US dollar investment to help more than 120,000 micro, small, and medium enterprises (MSMEs) transition to online business and participate in the digital economy.
The US$12.2 million (IDR 182 billion) investment consists of cash grants, digital skills training, and advertising credits for MSMEs, including micro-enterprises in rural and peri-urban areas.
"We have a big role to play in expanding economic, educational and community development opportunities in the region and around the world. We are thrilled to see the positive impact of TikTok," TikTok CEO Shou Chew said in Jakarta on Thursday.
CEO TikTok Shou Chew bersama Menko Marves Luhut Binsar Pandjaitan.
- VIVA/Misrohatun Hasanah
In Southeast Asia, more than 325 million people access TikTok each month and 15 million businesses also use the platform, according to the report "The TikTok Effect: Growing Business, Advancing Education, and Empowering People in Southeast Asia".
They found that the MSMEs surveyed saw a nearly 50 percent increase in revenue through selling products and services on TikTok.
Additionally, four out of five businesses (79 percent) utilized the platform to shift from offline to online marketing channels.
More than 80 percent of TikTok creators surveyed experienced increased revenue through a variety of opportunities, including TikTok Live and branded content partnerships.
Over the next three years, the 'Local Support' program aims to empower micro and small businesses, especially in rural areas, who are unfamiliar with social media marketing.
In collaboration with more than 25 government agencies and non-profit organizations across Southeast Asia, the program will open up opportunities for businesses to reach new digital consumers through cash grants, digital skills training, and advertising credits.
With more than 8,000 employees across Southeast Asia, TikTok is also committed to investing in developing local talent.
In six years, the Chinese platform has created new opportunities for creators and businesses on TikTok.
They've created e-commerce channels like TikTok Shop, which helps MSMEs connect with new customers and grow their businesses.
