Visit Kemenkop UKM, TikTok Ensures Project S Issues In RI Are Not True

JAKARTA - The Ministry of Cooperatives and Small and Medium Enterprises (Kemenkop UKM) has summoned TikTok to hold a discussion at the Kemenkop UKM Building in Jakarta, today, 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 informed 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 wholesaler (Project S) who will compete with local sellers in Indonesia," Anggini said at a press conference at the KemenKopUKM Building, on Wednesday, June 26.

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.

According to Anggini, TikTok has a vision that is in line with the Indonesian government to continue empowering local MSMEs.

"We are also here firmly stating that 100 percent of sellers on TikTok Shop have local business entities that are registered or are local micro entrepreneurs who also register through ID card verification or passports," he said.

Previously, the Ministry of Law and Human Rights asked the Ministry of Trade (Kemendag) to accelerate the revision of the Regulation of the Minister of Trade (Permendag) Number 50 of 2020 concerning Business Licensing, Advertising, Development and Supervision of Business Actors in Electronic Trade (PPMSE). This revision is necessary to protect MSMEs from business competition in the e-Commerce market.

Minister of Cooperatives and Small and Medium Enterprises (MenkopUKM) Teten Masduki said, one of the threats of MSMEs in the e-Commerce market is the emergence of trading patterns by utilizing social commerce, such as Project S released by social media TikTok.

Through the Project S of Tiktok Shop, Tiktok is thought to be able to find out various data on various products that are in great demand or needed by consumers in Indonesia, then the algorithm machine directs consumers to buy company products that are affiliated with them.