TikTok Shop Can Still Sell, But Must Change Business Permits First

Illustration (Photo: Doc. Antara)

JAKARTA - The government through the Ministry of Trade (Kemendag) regulates types of trade on electronic platforms.

Later there will be a different types of social-commerce or social media selling and e-commerce or marketplace.

The Director General of Domestic Trade at the Ministry of Trade, Isy Karim, said that the Minister of Trade Regulation Number 31 of 2023 would later be followed by regulations from the Ministry of Communication and Information (Kominfo).

Still said Isy Karim, this permit is still in the process of being formulated in Kominfo.

He added, there will be three categories, namely social media, social commerce and e-commerce.

For example, said Isy, social-commerce practices such as TikTok Shop. Isy said, TikTok Shop does not have a license as a social-commerce because there are no clear rules regarding this matter.

To be able to carry out buying and selling transactions, said Isy, TikTok Shop must apply for a new permit, namely a permit as an e-commerce.

TikTok Shop already has a SIUP 3A permit or the Foreign Trade Company Representative Office as a social commerce. But if he wants a transaction in it, then he must be e-commerce," he said at the Ministry of Trade, Jakarta, Wednesday, September 27.

Meanwhile, continued Isy, even if TikTok Shop takes care of permits as social-commerce, there will be restrictions imposed.

This limit refers to Article 21 paragraph 3 of the Minister of Trade Regulation Number 31 of 2023.

Article 21 paragraph 3 explains that social-commerce such as TikTok Shop should not carry out the buying and selling transaction process.

"To become an e-commerce he must have a business entity. So that doesn't mean TikTok Shop is prohibited, no. But it's reorganized," he said.