TikTok Has Not Submitted A Business License To Become An E-commerce

JAKARTA - The Ministry of Trade (Kemendag) revealed that the management of TikTok Indonesia has not applied for a business license for Trade Organizers through the Electronic System (PPMSE) or as an e-commerce.

Director of Trade Through Electronic Systems and Services Trading, Rifan Ardinato, said that his party is still waiting for TikTok Indonesia regarding the application for a business license as an e-commerce for the TikTok Shop service.

"For permits related to e-commerce, it has not been received by us," he said in Jakarta, Thursday, October 12.

Furthermore, Rifan said that TikTok Indonesia has now adjusted the business model in accordance with the Regulation of the Minister of Trade (Permendag) Number 31 of 2023.

"This means that it is in accordance with the 31 2023 candy as a social-commerce but indeed related to e-commerce licensing, we have not received it. Social-commerce they have done it," he said.

As previously reported, TikTok Indonesia announced that it would stop buying and selling transactions at the TikTok Shop service, Wednesday, October 4 at 17.00 WIB.

This step is in response to the new rules issued by the Indonesian government.

As is known, the government has just issued a new regulation regarding trade through electronic systems (PMSE).

One of the things that is regulated in it is prohibiting social media from buying and selling transactions. This rule is contained in the Minister of Trade Regulation Number 31 of 2023.

TikTok Indonesia management said that its main priority was to respect and comply with the applicable regulations and laws in Indonesia.

"Thus, we will no longer facilitate e-commerce transactions within TikTok Shop Indonesia, effective as of October 4, 17.00 WIB," the management wrote in an official statement, quoted Wednesday, October 4.

"We will continue to coordinate with the Government of Indonesia regarding our steps and plans in the future," he continued.