TLDR: Indonesian tech giant GoTo has reported its first-ever adjusted pre-tax profit, signaling a strong financial turnaround. Simultaneously, TikTok is expanding its market presence in the region through its acquisition of Tokopedia. Artificial intelligence is identified as a crucial catalyst for Indonesia’s upcoming wave of technological advancement and economic growth.
Indonesia’s digital economy is experiencing a significant surge, marked by major milestones from its leading players. PT GoTo Gojek Tokopedia Tbk (GoTo), the nation’s largest digital ecosystem, has announced a landmark achievement, reporting its first adjusted pre-tax profit. For the recent quarter, GoTo recorded an adjusted pre-tax profit of Rp 62 billion (approximately $3.74 million USD), a substantial increase of Rp 728 billion year-on-year. The company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw a remarkable improvement, reaching Rp 516 billion, a 239 percent rise compared to the previous year. This positive momentum is further underscored by a positive adjusted free cash flow of Rp 247 billion, reflecting robust operational and financial performance.
GoTo’s strong performance has led the company to raise its full-year adjusted EBITDA guidance to between Rp 1.8 trillion and Rp 1.9 trillion, demonstrating confidence in its sustainable growth trajectory. The company’s e-commerce service fee from PT Tokopedia alone contributed Rp 211 billion in the third quarter, and GoTo maintains a solid cash position with Rp 18 trillion ($1.1 billion) in cash, cash equivalents, and short-term deposits as of September 30, 2025. Patrick Walujo, GoTo Group Chief Executive Officer, stated, “In the third quarter, we reached another milestone, generating an adjusted pre-tax profit for the first time, amounting to Rp 62 billion.”
In parallel, the social media giant TikTok is significantly expanding its footprint in the Indonesian market. This expansion is primarily driven by its strategic acquisition of Tokopedia, a deal valued at $840 million. The transaction received approval from the KPPU (Indonesia’s Business Competition Supervisory Commission) under strict terms, indicating a significant move to consolidate its e-commerce presence in Southeast Asia’s largest economy.
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Artificial intelligence (AI) is emerging as a pivotal force driving Indonesia’s next wave of technological and economic development. GoTo itself has been actively advancing its AI initiatives, recognizing its potential to enhance its ecosystem. Across Southeast Asia, AI is projected to power a substantial portion of the region’s GDP, with estimates suggesting it could contribute up to US$950 billion. Indonesia is actively exploring AI-related policies, including discussions around a Sovereign AI Fund and the implementation of AI banking rules, highlighting the government’s commitment to integrating AI into various sectors and fostering an AI-led growth potential within its e-commerce sector, which is projected to hit $145 billion. This focus positions AI as a key enabler for innovation and economic transformation across the archipelago.
