Tiktok Commits $12.2 Million Investment to Help SMEs in Southeast Asia

Dream - Short video platform TikTok is committed to investing $12.2 million or around Rp187 billion in the Southeast Asia region. The investment is mainly aimed at encouraging Micro, Small, and Medium Enterprises (MSMEs) to enter the digital economy.

The investment commitment allocated by TikTok is expected to help more than 120,000 MSMEs in Indonesia, Thailand, Vietnam, the Philippines, and Malaysia.

"We are very pleased to see the positive impact of TikTok and we are committed to continuing our efforts to support businesses to grow and thrive," said Shou Zi Chew at the TikTok Southeast Asia Impact Forum in Jakarta on Thursday, June 15, 2023.

According to Shou Chew, the hundreds of billions of investment will be provided in the form of cash grants, digital skills training, and advertising credits for MSMEs, including micro businesses in rural and suburban areas.

With the allocated investment, TikTok hopes that MSMEs in this region will transition to online businesses and participate in the digital economy for the next three years.

Income of SMEs Increases by 50%

"Many entrepreneurs are building their businesses on TikTok, so brands can communicate their products more deeply here. Hopefully, this can revive the country's economy," he explained.

Referring to the results of the TikTok Effect report: Growing Businesses, Advancing Education, and Empowering Communities in Southeast Asia", the surveyed SMEs stated that they experienced an almost 50% increase in income through product and service sales on TikTok.

The survey also found that four out of five businesses (79%) utilize TikTok to transition from offline marketing channels to online.

80% of Content Creators Profit

In addition, more than 80 percent of surveyed TikTok creators stated that they have experienced an increase in income through various opportunities, including TikTok LIVE and branded content collaborations.

"In Southeast Asia, more than 325 million people access TikTok every month, and 15 million businesses also use this platform," he said.

Programs in Indonesia

Regarding investment in Indonesia, TikTok has partnered with the Ministry of Tourism and Creative Economy, the Women's Resource Development Center Association (PPSW), the Social Enterprise Platform (PLUS), and PT Telkom Indonesia Tbk to build internet connectivity in community centers in nine villages in East Nusa Tenggara and North Sumatra.

In addition to strengthening local digital infrastructure, 'TikTok Jalin Nusantara' will provide training programs in villages and in five creative centers in tourist destinations.

This program will provide digital and financial literacy training to communities, and essential digital skills modules such as content creation, e-commerce, and digital marketing, to support their participation in the digital economy.

The pilot locations for these various centers include 9 Tourist Villages, 3 in East Nusa Tenggara (Pasir Panjang, Pajoreja, Kawa) and 6 in North Sumatra (Hariara Pohan, Lumban Suhisuhi, Djangga Dolok, Seribubunga, Sait Buttu Asri, Tigarihit Colorful Village).

It also includes creative centers such as Labuan Bajo, Samosir, Semarang, Banyuwangi, Jayapura, and Telkom IndigoHubs, namely Pekanbaru, Bogor, Yogyakarta, Malang, Balikpapan.