Launching the TikTok page, they stated that the decision was because they respected and complied with the regulations and laws in force in Indonesia.
"As such, we will no longer facilitate e-commerce transactions within TikTok Shop Indonesia, effective October 4, 17.00 WIB," wrote management, quoted on Tuesday, October 3 2023.
TikTok Indonesia also explained that it would not be indifferent and would continue to coordinate with the Indonesian government regarding the company's future steps and business plans.
"We will continue to coordinate with the Indonesian Government regarding our future steps and plans," explained management.
Threat to the existence of MSMEs
As is known, the feature on the TikTok platform, namely TikTok Shop, has come under fire because it threatens the existence and continuity of the country's MSMEs.In this feature, traders can sell cross-border products at very cheap prices.
Minister of Cooperatives and SMEs Teten Masduki has also mentioned allegations of predatory pricing or selling goods far below the capital price through this feature.
Then the Ministry of Trade (Kemendag) issued Minister of Trade Regulation Number 31 of 2023, which prohibits social commerce platforms. One platform must choose whether to be social media or e-commerce.
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