Indonesia labor advisor to confront TikTok over alleged Tokopedia layoffs

Said Iqbal, an advisor to the Indonesian President on labor affairs, announced his intention to visit TikTok Indonesia's office in South Jakarta on Tuesday. Iqbal suspects that Tokopedia, the e-commerce company now owned by TikTok Pte Ltd, has terminated employment for 90% of its workforce.

He further alleges that TikTok initiated these layoffs after acquiring Tokopedia and managing its operations from its offices in China. If these suspicions are confirmed, Iqbal stated he would sue TikTok under the International Labour Organization (ILO) Convention 193, which concerns decent work in the platform economy, including decent work for digital/gig workers.

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Tomorrow at 10 a.m., we will go to the TikTok office. If they (TikTok Indonesia management) do not receive us, I will stand right in front of the TikTok door. Why should we be troubled?

"Tomorrow at 10 a.m., we will go to the TikTok office. If they (TikTok Indonesia management) do not receive us, I will stand right in front of the TikTok door. Why should we be troubled?" Iqbal asked reporters after a press conference by the Coalition of Labor Unions with the Labor Party (KSP-PB) in Menteng, Central Jakarta, on Monday, July 6, 2026.

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Business must be mutually beneficial. It should not harm the nation's children. How many zeros are in $1.5 billion?

The President of the Labor Party expressed regret over the alleged layoffs, especially considering TikTok's investment of over $1.5 billion (approximately Rp 23 trillion) as a long-term commitment to support Tokopedia's operations. Iqbal's visit aims to ensure that the 1,250 employees allegedly laid off by Tokopedia receive their rights. "Business must be mutually beneficial. It should not harm the nation's children. How many zeros are in $1.5 billion?" Iqbal rhetorically asked reporters.

In response, R. A. Koesoemohadiani, Corporate Secretary of PT GoTo Gojek Tokopedia Tbk (GOTO), addressed the widespread reports of mass layoffs at PT Tokopedia. She stated that GOTO respects the actions taken or to be taken by PT Tokopedia's management regarding organizational adjustments. Koesoemohadiani assured that the impact of these measures on GoTo's financial and non-financial aspects would be limited, as GOTO's ownership stake in Tokopedia was diluted to 24.99% in January 2024. Consequently, GOTO no longer consolidates Tokopedia's actions.

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GOTO does not consolidate Tokopedia's actions anymore.

GoTo currently accounts for its investment in PT Tokopedia using the equity method, in accordance with Financial Accounting Standards Statement (PSAK) 228 concerning investments in associates and joint ventures. Therefore, any financial impact on GoTo would be limited to the net profit/loss section of associates and joint ventures. "There is no material impact on GoTo's share of PT Tokopedia's net profit/loss," Koesoemohadiani stated, adding that there would be no impact on e-commerce service costs.

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There is no material impact on GoTo's share of PT Tokopedia's net profit/loss.