TikTok Project S Will Not Enter Indonesia, Minister Teten: They Have Promised

The Minister of Cooperatives and SMEs of the Republic of Indonesia Teten Masduki. (Photo: Doc. Antara)

JAKARTA - Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki ensured that TikTok Project S would not enter Indonesia.

The reason is, this can have an impact on workers for local MSMEs.

"I see that Project S TikTok as in the UK and several other countries, right, is very hitting local products, yes," said Teten in a recording received by VOI from the Public Relations team of the Ministry of Cooperatives of SMEs, Thursday, July 27.

Teten said that his party had coordinated with TikTok recently and discussed this matter.

"The sophistication of their algorithm technology, which yesterday we had a meeting with TikTok, they promised Project S would not be held in Indonesia," he said.

All digital platforms, he continued, specifically those from abroad must sell their wares using existing import mechanisms.

This is because Indonesian MSMEs only have to go through several processes so that their merchandise can be sold, ranging from processing distribution permits, SNI, to halal certification.

"Online retail via post border from outside must be prohibited, no longer allowed online retail from there directly to consumers, they must first enter through the usual import mechanism, then they sell their goods online," said Teten.

Previously, the Ministry of Cooperatives and Small and Medium Enterprises (KemenKopUKM) had summoned TikTok to hold a discussion at the Kemenkop UKM Building in Jakarta, on Wednesday, July 26.

On that occasion, the two discussed the issue of Project S from TikTok Shop which is suspected to threaten the domestic product market and the unfair application of trade in the marketplace.

TikTok Indonesia Head of Communication Anggini Setiawan ensured that the Project S issue was not true.

"We have given information to the Ministry of Cooperatives and SMEs that it is not true that we have the intention to create our own e-commerce product or to become a whole seller (Project S) who will compete with local sellers in Indonesia," said Anggini.

He emphasized that TikTok does not open a cross-border business or cross-border business in Indonesia to protect domestic MSME products.

"It is not true that we will launch an Indonesian cross-border initiative and we are very happy that we can finally convey this directly to the Ministry of Cooperatives and SMEs today," he said.