You Can Still Do Business, Here Are TikTok Shop Requirements For Selling In Indonesia

Illustration of TikTok Shop (Doc. Antara)

YOGYAKARTA The ban on TikTok Shop operations in Indonesia comes into effect today, Wednesday, October 4, 2023. However, people can still use TikTok as social media, not as a platform that serves the sale and purchase of products. The government itself has the requirements for TikTok Shop to be sold in Indonesia.

Regarding the requirements for allowing TikTok to do business in Indonesia, Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki said that the Government does not prohibit business activities from being carried out in the country, as long as the TikTok company meets the proposed requirements. The condition that must be met is that TikTok must establish an official and legal office in Indonesia.

"Because now it's only a representative office, the representative office can only be promo, it can't be sold. So he has to make an office with a legal entity here, no longer representatives, then they are because this is a business that has a risk, he must have a license first, then he can get permission to sell," explained Teten, quoted from Antara.

Previously, TikTok Shop only had a representative office in Indonesia. The Chinese company does not yet have a legal office in the country. On the other hand, the representative office only has a permit to carry out promotional, not trade and transaction activities.

The government itself has regulated the separation between social media and e-commerce which does not only apply to TikTok, but to all companies. This is as stated in Permendag Number 31 of 2023 concerning Business Licensing, Advertising, Development, and Supervision of Business Actors in Electronic Systems (PMSE).

Referring to Permendag No. 31 of 2023, TikTok is still allowed to buy and sell, but it must be with a new entity in the form of e-commerce.

With the new regulation from the Government, TikTok has finally begun to close their trading services in the form of TikTok Shop starting today, Wednesday, October 4, 2023. The company also provided a brief circular regarding the decision.

"Our main priority is to respect and comply with the applicable regulations and laws in Indonesia. Thus, we will no longer facilitate e-commerce transactions on TikTok Shop Indonesia, effective as of October 4, at 17.00 WIB," wrote TikTok management which was broadcast on its official website.

The company also said that their party would continue to coordinate with the Government of Indonesia regarding the steps and plans of the company in the future.

The closure of TikTok Shop is admitted to have had quite an impact on some people. Although many have complained, the Minister of Cooperatives and Small and Medium Enterprises Teten Masduki believes that the Government's decision will not have a negative impact on small traders.

"With the closure of the TikTok Shop, I don't think it will be too disturbing actually for sellers, because MSME players who sell online can take advantage of product promos on their social media, on TikTok. Now, if the sales are directed to links, for example, later in multiplatforms," explained Teten at the Presidential Palace Complex, Tuesday, October 2.

That's information regarding the requirements for TikTok Shop to be sold in Indonesia. Visit VOI.ID to get other interesting information.