Economist: Banning TikTok Shop Doesn't Affect Domination Of Imported Products In E-Commerce
JAKARTA - Digital Economy Director Celios Nailul Huda said the ban and operational closure of the TikTok Shop platform had an impact on other electronics trading businesses that sell cheap imported goods and keep imported products dominant.
"The Regulation of the Minister of Trade Number 31 of 2023 only strictly regulates cross-border commerce. For imported goods that already exist in Indonesia, the platform is still free to sell and provides discounts that have the potential to generate predatory pricing," he said in a statement in Jakarta, quoted from Antara, Monday 9 October.
Huda views Shopee as the platform that will benefit the most from the issuance of regulations governing the social commerce. Shopee and TikTok Shop both sell imported goods directly from abroad. According to him, the closure of the TikTok Shop platform only moves imported goods from TikTok to other electronic trading platforms. In fact, including transactions via Instagram and WhatsApp with security systems are not guaranteed. "The government's role is very important to ensure that every imported goods sold through the marketplace have followed the existing rules, so that local products that have been less competitive because price factors can be more protected. Including predatory pricing actions that are often carried out by foreign applications," said Huda. Furthermore, he sees positively Regulation of the Minister of Trade Number 31 of 2023 which regulates the minimum limit of importing goods by local goods of at least 100 US dollars or around Rp. 1.5 million. Even so, the implementation of such regulations is the concern of millions of micro, small and medium enterprises (MSMEs). So far, local MSMEs have been victims of predatory pricing of imported products sold by foreign localizers. President Joko Widodo has also expressed his concern about the swiftness of imported goods sold very cheaply through online applications.
According to the President, apart from successfully collecting data and consumer behavior in Indonesia, 90 percent of goods sold through the application are imported goods. In fact, the President said that there are clothes sold through online platforms for Rp. 5,000. "There is predatory pricing, burning money to control data, mastering the behavior of our consumers. Don't let us be complacent, we don't realize that we have been colonized economically," said President Joko Widodo while giving directions to participants of the XXIV Short Education Program (PPSA) and alumni of the LXV Regular Education Program. 2023 National Resilience Institute at the State Palace, Jakarta, on October 4, 2023.