Minister Of Communication And Information Budi Reveals 3 Reasons For Closing The TikTok Shop Sale And Purchase Transaction Service

Minister of Communication and Information (Menkominfo) Budi Arie Setiadi. Photo: Theresia Agatha/VOI

JAKARTA - TikTok Shop has started closing its business and services today, Wednesday, October 4, starting at 17.00 WIB.

This is in line with the issuance of Regulation of the Minister of Trade (Permendag) Number 31 of 2023 concerning Business Licensing, Advertising, Guidance, and Supervision of Business Actors in Trade Through Electronic Systems (PMSE).

Regarding the closure of services on the platform, the Minister of Communication and Information (Menkominfo) Budi Arie Setiadi said, there were three things that caused the closure of the TikTok Shop platform.

"First, regarding predatory pricing, the price period for goods is sold under the Cost of Sales (HPP), it damages the market (market), right. Second, regarding algorithms, algorithms that can be misused, and the third is about imported goods from other countries," said Minister of Communication and Information Budi to reporters after being met at the National Special Conference (Munassus) National Entrepreneurs Network (Japnas) in the Cilandak area, South Jakarta, Wednesday, October 4.

Budi said this had become the government's policy entirely to protect domestic MSMEs.

"In our domain, right, on the platform, the cabinet policy is clear that there must be a separation between social media and E-commerce," he said.

According to Budi, the Indonesian people should buy and use domestically made goods, so e-commerce is also advised to sell domestically made products.

"I always say to E-commerce also basically prioritizes domestic products, Indonesian products," he said.

As previously reported, at a limited meeting (Ratas) chaired by Indonesian President Joko Widodo (Jokowi) at the Presidential Palace Complex, Monday, September 25, the government agreed through the revision of Permendag Number 50 of 2020 concerning Provisions for Business Licensing, Advertising, Development and Supervision of Business Actors in Trade Through Electronic Systems.

In the latest regulations, the government prohibits social media such as TikTok from selling. The reason is, it is feared that this practice will trigger market monopolies and unhealthy competition.