October 5, 2023

Indonesia prohibits online shopping is a huge setback for TikTok


In a setback for short video app TikTok, which is doubling down on Southeast Asia’s. Largest economy to boost its e-commerce business. Indonesia has outlawed e-commerce transactions on social media platforms, the trade minister announced on Wednesday.

The government added that small and medium sized businesses are at risk from predatory pricing on social media platforms. And that the action, which is effective right away, is intended to protect offline retailers and marketplaces.


Only three months had passed since TikTok announced its plans to invest billions of dollars over several years in Southeast Asia, mostly in Indonesia, to establish its TikTok platform. Shop e-commerce platform.

With 125 million active monthly users in Indonesia, More Then TikTok, owned by China’s ByteDance. Has been attempting to turn the sizable user base into a significant e-commerce revenue generator.

A spokesman for TikTok Indonesia stated that the company would continue on a positive route but concern over the announcement, particularly how it would affect the 6 million” local sellers that are active on TikTok Shop.

The regulation is meant to ensure “fair and just” corporate competition, Indonesian Trade Minister Zulkifli Hasan told reporters on Wednesday. He further stated that it was created to protect the security of user data.

He forewarn against using social media as a platform More then for online shopping, banking, and other financial transactions.

According to the regulation document examine by Reuters, additional requirements of the new law include requiring Indonesian e commerce platforms to set a minimum price of $100 for specific items that are directly import from overseas and requiring that all goods offered must adhere to local norms.

TikTok has one week to comply with the rule or risk being shut down, according to Zulkifli. TikTok’s live were used earlier this month as an example of someone selling items on social media by Indonesia’s Deputy Trade Minister Jerry Sambuaga.a

Read More: Dubai will begin robotaxi experiments in a big push toward

Comments are closed.