Friday, June 14, 2024

TikTok’s US$ 12.2 million investment empowers Southeast Asian MSMEs in digital transition

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Journalist IBP

Journalist

Mahinda Arkyasa

Editor

Interview

TikTok has allocated a substantial investment of US$ 12.2 million to assist over 120,000 micro, small, and medium enterprises (MSMEs) in Southeast Asia with their transition to online businesses and participation in the digital economy. 

This investment encompasses cash grants, digital skills training, and advertising credits for MSMEs, particularly those located in rural and suburban areas. 

Positive impact on MSMEs

TikTok, as a supportive platform for businesses and creators, is committed to fostering economic growth and development.

A report titled “The TikTok Effect: Boosting Businesses, Advancing Education, and Empowering Communities in Southeast Asia,” released by Kadence International, highlights the significant benefits experienced by MSMEs on TikTok.

The survey results mentioned in the report revealed that MSMEs witnessed a nearly 50% increase in revenue through product and service sales on the platform. Additionally, 79% of businesses leveraged TikTok to transition from offline to online marketing channels.

Shou Chew, TikTok’s CEO, emphasizes the platform’s extensive reach in Southeast Asia, with over 325 million monthly users and 15 million businesses. 

Local support to Indonesian MSMEs

Chew acknowledges the role TikTok plays in expanding economic opportunities, education, and community development across the region and worldwide. 

He affirms TikTok’s dedication to supporting individuals, communities, and businesses in their growth and advancement.

Over the next three years, TikTok will implement the “Local Support” program aimed at empowering micro and small businesses, particularly those in rural areas unfamiliar with social media marketing. 

Collaborating with over 25 government institutions and non-profit organizations throughout Southeast Asia, this program will provide businesses with opportunities to reach new digital consumers through cash grants, digital skills training, and advertising credits.

In Indonesia, TikTok will partner with the Ministry of Tourism and Creative Economy, the Association for the Development of Women’s Resources (PPSW), the Social Business Platform (PLUS), and Telkom to launch “TikTok Jalin Nusantara.” 

This initiative aims to enhance internet connectivity in community centers across nine villages in East Nusa Tenggara and North Sumatra. 

TikTok Jalin Nusantara will offer training programs in these villages, five creative hubs in key tourism and creative economy destinations, and five Telkom IndigoHubs. 

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

Support to education

As a global platform, TikTok enables discovery and learning. According to the aforementioned report, 90% of respondents who used TikTok for learning stated that they acquired new skills they did not possess before. Moreover, 61% of respondents believed that TikTok made digital learning more accessible. 

This includes organizing educational workshops and sustainability-themed challenges regarding daily lifestyle choices like waste separation and energy consumption.

These efforts align with TikTok’s goal of enhancing climate education content and achieving operational carbon neutrality by 2030.

Journalist IBP

Journalist

Mahinda Arkyasa

Editor

 

Interview

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