Investment Minister Bahlil Says TikTok Is Licensed For Social Media, Not E-Commerce

Illustration (Photo: Doc. Antara)

JAKARTA - Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia spoke about TikTok shops being prohibited from carrying out buying and selling transactions.

He said that the TikTok platform had indeed applied for permission from the government as social media.

Therefore, continued Bahlil, there should be no buying and selling transactions in it. If TikTok does not heed the government's warning to stop selling, the government will revoke the application's license.

“The permission used by TikTok is not a permission to do business, but for social media. "I was forced to make the decision to withdraw if I was playing around, there was no story," he said in a press conference, written on Tuesday, September 26.

Furthermore, Bahlil said that the government currently wants to regulate the management of cross-border goods.

Because, so far these goods have entered the country without paying tax.

"So we will regulate the management of cross-border goods that do not pay tax. We ask you to enter the warehouse first, when you leave you have to pay tax. "That's not wise with domestic products, while domestic transactions pay tax," he explained.

Therefore, continued Bahlil, the rules regarding social commerce not being allowed to be combined with e-commerce will be contained in the revised Minister of Trade Regulation (Permendag) Number 50 of 2020.

"A Minister of Trade Regulation has been prepared so that information like TikTok is only for social media and should not be used for sale," he said.

Regarding this new rule, Bahlil admitted that there was no need to mention it to TikTok. Because they are the ones who have to obey government regulations.

In fact, Bahlil invited TikTok to leave Indonesia if he objected to the new regulations that the government would implement.

“Why talk to them? they have to follow the state. If you (don't mind letting) leave, let him leave. What's the deal? "What's the loss for the country?" he said.