• TikTok in talks for Indonesian payments license amid global scrutiny.
• Aims to boost e-commerce ambitions in Southeast Asia.
• Indonesia has 125 million monthly TikTok users.

TikTok, the popular short video platform owned by Chinese tech giant ByteDance, is in the early stages of talks with Indonesian regulators to obtain a payments license.

This move comes as TikTok aims to expand its e-commerce ambitions in one of the largest markets in Southeast Asia while facing heightened scrutiny in the United States and other countries.

In June, TikTok CEO Shou Zi Chew announced the company’s plan to invest billions of dollars in Indonesia and the rest of Southeast Asia. The application for a payments licence is currently being discussed with Indonesia’s central bank and is reportedly being viewed favourably.

A TikTok spokesperson confirmed the ongoing talks, emphasizing that securing an Indonesian payments licence would benefit local creators and sellers on the platform.

By obtaining the licence, TikTok would have the opportunity to earn transaction fees, allowing it to compete more directly with existing Southeast Asian e-commerce giants, such as Sea’s Shopee and Alibaba’s Lazada.

TikTok already boasts an impressive user base in Indonesia, with approximately 125 million monthly users—on par with its user figures in Europe and not far behind its 150 million users in the US.

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The move to obtain a payments licence aligns with TikTok’s commitment to strengthening its position in the Indonesian market.

This is not the first time ByteDance has pursued a payment licence. Its Chinese counterpart, Douyin, acquired a payments licence in China in 2020.

However, it remains unclear if TikTok has secured such licences elsewhere in the world.

Indonesia, with a population of over 270 million, has witnessed a significant surge in e-commerce transactions, amounting to nearly $52 billion last year alone. Of that total, approximately 5% occurred on TikTok, primarily through live streaming.

While TikTok continues to expand globally, it has faced mounting concerns in the US regarding potential Chinese government influence.

As a result, the app has been banned on government devices by the White House and several US state governments, with Montana planning a complete ban next year.

The company has repeatedly stated that it does not share US user data with the Chinese government and has taken significant measures to safeguard user privacy and security.

In addition to the US, countries like Australia and Canada have also banned TikTok’s use on government devices.