[Indonesia] On TikTok Commerce, Micro Creators and Live Streams Sell

TikTok Shop and Tokopedia Become One

In 2023, TikTok temporarily shut down TikTok Shop in Indonesia after in-app shopping was banned. It then bought a 75.01% stake in Tokopedia, a major local marketplace, for US$840 million, completing the acquisition in January 2024 (Reuters). Today, products seen in TikTok videos and live streams are purchased through Tokopedia’s payment and delivery.

The results show in the numbers. According to Singapore-based research firm Momentum Works, TikTok Shop and Tokopedia’s combined share of Indonesia’s online shopping GMV (gross merchandise value, the total value sold on a platform) rose from 34% in 2024 (Tokopedia 23% + TikTok Shop 11%) to 38% in 2025. Market leader Shopee grew even further over the same period, from 46% to 54%. The market has effectively become a two-horse race.

Note that in May 2025, Indonesia’s competition authority found monopoly risks in the acquisition and imposed conditions such as keeping payment and delivery options open and banning self-preferencing (Reuters). In a market where the rules can change, it’s safer not to rely on a single platform.

Who Sells — Small Creators and Live Streams

On TikTok Shop, sales come from creators rather than brand advertising. The core model is affiliate marketing, in which creators attach product links to their videos or live streams and earn a commission on what sells. Since you don’t need a large following to add product links, countless micro creators sell the same product at the same time.

According to the e-Conomy SEA 2025 report by Google, Temasek and Bain, video commerce transactions in Indonesia reached 2.6 billion, up 90% in a year, and sellers grew to about 800,000 (up 75%). Average order values are around US$4.5–6 — people buy small and often. Fashion and accessories, along with beauty and personal care, account for nearly half of video commerce GMV.

Live streams are powerful too. In a NielsenIQ survey of 1,016 Indonesian internet users during the year-end sales in December 2024, 78% named live shopping as their favorite feature, and 44% said they spent more than usual during live streams. 50% also said they had bought through affiliate links. As live hosts, respondents trusted store owners (51%) and influencers (50%) the most.

What They Buy On — Ingredients over Brands

Indonesian beauty consumers look at ingredients rather than brand names. In a September 2024 survey of 1,100 Millennials and Gen Z by research firm Populix, 56% cited more advanced technology and 48% better ingredients as reasons for using foreign skincare. Among foreign products, Korean ones had the highest usage at 31%. However, 87% of respondents in the same survey said they use domestic skincare — local brands remain the mainstay.

Brands that sell well locally also lead with ingredients. Skintific puts ingredients right in its product names, as in “5X Ceramide,” and ranked No. 1 in moisturizer share on Shopee in Q2 2025 (9.07%), according to data firm Compas. The CEO of local brand Azarine also called 2022 “the year ceramide became a star ingredient” (Premium Beauty News, 2023). The “K-beauty” label alone does not set you apart from these brands.

That is why creator content also centers on ingredient explanations. Videos and live streams that break down in Bahasa Indonesia which ingredients are included and at what percentage, whether a product feels heavy in hot, humid weather, and whether it suits viewers’ skin tones and concerns are what drive purchases.

How Korean Brands Should Prepare

Seed wide, in small amounts. Sending samples to dozens or hundreds of micro creators and opening affiliate links fits TikTok Shop’s structure better than one mega-influencer. Look at the data on who actually sold, then concentrate the next batch on the creators who fit best.

Go live regularly, not just once. Hold live streams on set days and times, and increase their frequency around date-based sales such as 12.12. Running your brand account’s own live streams alongside creator live streams builds cumulative exposure.

Tell the ingredient story in the local language. Summarize key ingredients, concentrations and texture in Bahasa across product detail pages, live scripts and creator guidelines. Check halal certification status at the same time (the certification process was covered in Report 02).

Through our Indonesia office, HOMI FACTORY designs local creator seeding and live stream operations together with you. We can start by deciding who gets your first batch and with which ingredient message.