Three E-commerce Stocks Surge After TikTok Shop Closure

The Indonesian government shut down TikTok Shop on Wednesday, October 4, 2023, at 5:00 PM WIB. TikTok Shop was accused of causing a slump in sales for Indonesian MSMEs (Micro, Small, and Medium Enterprises) because the prices of goods sold on its platform were reportedly cheaper than other e-commerce platforms.

The closure is based on the Minister of Trade Regulation (Permendag) Number 31/2023 concerning Business Licensing, Advertising, Guidance, and Supervision of Business Actors in Electronic Commerce.

Trade Minister Zulkifli Hasan, also known as Zulhas, stated that social e-commerce platforms like TikTok Shop are only permitted to promote goods and services, similar to product advertisements shown on television.

“They must be separated so that algorithms are not all controlled and to prevent the use of personal data for business purposes,” said Zulhas, as reported on Wednesday, September 26, 2023.

The closure has drawn mixed reactions from the public. The sentiment surrounding the TikTok Shop closure also impacted the stock movements of three major e-commerce companies in Indonesia, as reported by Katadata.

The three e-commerce companies that saw their stock prices rise after the TikTok Shop closure are PT Global Digital Niaga Tbk (BELI); PT Bukalapak.com Tbk (BUKA); and PT GoTo Gojek Tokopedia (GOTO).

(See also: Transactions on its Shop Will Be Banned in Indonesia, How Has TikTok's Revenue Been So Far?)

According to Yahoo Finance data, the stock price of Blibli (BELI) has mostly traded between Rp452 and Rp454 per share.

BELI reached Rp454 at the close of trading on September 8, 2023, then fell to Rp452 and remained there until today. When TikTok Shop was closed on October 4, 2023, Katadata reported that the stock price initially rose to Rp456 at the opening of trading, its highest price.

RTI Business reported that BELI's market capitalization reached Rp53.56 trillion. The volume was 158,300 shares with a transaction value of Rp71.6 billion. RTI noted that this issuer is listed on the Indonesia Stock Exchange (BEI)'s new economic board.

Next, BUKA was recorded at Rp210 per share on October 3, 2023. Its value dropped to Rp206 per share when TikTok Shop closed.

However, its value strengthened again to Rp208 on Thursday, October 5, 2023. BUKA further strengthened to Rp212 on Friday, October 6, 2023.

RTI reported that the issuer's market capitalization reached Rp21.86 trillion. The share volume was 53.47 million with a transaction value of Rp11.3 billion.

Finally, GOTO was observed to reach Rp83 per share at the close of trading on October 3, 2023. When TikTok Shop closed, it briefly dipped to Rp82. However, on October 5, 2023, it rose again to Rp84 and has remained there until today.

The market capitalization of this technology issuer reached Rp99.49 trillion. The circulating share volume reached 1.96 billion with a transaction value of Rp164.47 billion.

(See also: Before Closing in Indonesia, TikTok Shop's Market Share Was Predicted to Soar in 2023)