Indonesia's e-commerce sector is facing a phase of deep transformation as ongoing efficiency policies continue within Tokopedia. The phenomenon of layoffs (PHK) that re-emerged in early July 2026 has sparked widespread discussion regarding the company's business direction under the control of ByteDance following its integration with TikTok Shop.
General Chair of the Indonesian E-Commerce Association (idEA), Budi Primawan, emphasized that the efficiency measures are internal corporate decisions aimed at achieving business sustainability. According to him, the digital industry is currently shifting from a phase of aggressive market growth pursuit toward a leaner business model that prioritizes profitability. This step is seen as an organizational adjustment to enable the company to survive amidst increasingly fierce competition.
Digital expert and Executive Director of the ICT Institute, Heru Sutadi, highlighted that the integration between TikTok Shop and Tokopedia still leaves challenges in adjusting their business models. In addition to functional redundancies, a significant shift is also driven by the adoption of artificial intelligence (AI) technology. Automation is beginning to replace human roles in various operational functions, ranging from customer service and marketing to data analysis, ultimately changing the talent requirements in digital companies.
On the other hand, Tokopedia recorded a significant financial recovery, posting a net profit of IDR 600 billion throughout 2025. Nevertheless, efficiency measures have still been carried out progressively since 2024. The latest wave of cuts reportedly targeted various strategic divisions, including technology development and fulfillment services.
Responding to this situation, Heru Sutadi urged the government to be more proactive in monitoring the dynamics of the digital economy sector. He hopes that relevant ministries can engage in dialogue with business actors so that corporate efficiency does not always culminate in mass layoffs that impact workers. To date, TikTok has stated that the organizational adjustments made are aimed at aligning research and development to drive long-term growth for creators and sellers on their platform.
