The venture will further promote Tencent's highly popular mobile chatting app WeChat, which the company introduced to Indonesia late last year and other products will also be introduced in the future.
Indonesians, which number 240 million, are among the world's biggest users of Facebook and Twitter.
"The partnership between Tencent and MNC is our strategic step to expand our reach to Indonesian customers," said Martin Lau, Tencent's president said in a statement.
Hillhouse Capital, one of China's biggest investment funds, is participating in the venture. The companies did not provide financial terms.
Hary Tanoesoedibjo, owner of MNC group and CEO of Global Mediacom, told Reuters in 2012 that he plans to develop local social media platforms as well as online gaming to tap the growing domestic market.
(Reporting by Fathiya Dahrul; Editing by Edwina Gibbs)