HIPPI Regarding TikTok Shop Banned From Selling: There Are Still Pros And Cons Among Entrepreneurs

The Indonesian Indigenous Entrepreneurs Association (HIPPI) said there were pros and cons from businessmen regarding the prohibition of social commerce, including TikTok Shop.

It is known that the government closed the TikTok Shop on October 4, 2023.

This follows a government policy that prohibits social media from having double functions as e-commerce in accordance with the Regulation of the Minister of Trade (Permendag) Number 31 of 2023.

"I want to explain how entrepreneur friends think, this is of course the same among entrepreneurs, some are pros, some are cons," said Chairman of the DPP HIPPI Suryani Sidik Motik in the discussion 'Small Business Customers Dilibas Social Commerce' which was monitored online on Monday, October 16, 2023.

Suryani said that the pros and cons must first be seen from what the government actually aims to prohibit social commerce, one of which is TikTok Shop. First, he said, there is an issue of Tanah Abang Market which is quiet due to the existence of social commerce. In addition, the government must protect the public, including buyers and sellers.

"On the one hand, platforms about online sales are nothing new for us," he said.

He also gave an example of other e-commerce such as Shopee. Meanwhile, TikTok was originally not a sales platform, but suddenly entered sales.

According to him, on other platforms consumers can trace who the seller is, as well as the product and store rating. That way, it can be used as a reference tool to buy.

"I don't think it's because TikTok doesn't register as a platform to sell, then make sales, I don't know exactly how far (SOP)," said Suryani.

Therefore, Suryani also wondered whether TikTok had registered with the sellers on TikTok Shop or was carried out while walking. So, he said, there were many complaints, for example, the goods were not appropriate and there were no ratings for the shop.

"Well, this means, right, there is an element of fraud," he said.

If this is true, continued Suryani, the government's position to ban TikTok Shop is correct. However, the government is not enough to just ban it.

"Because the government should before doing something, it must have complete data. For example, how much TikTok provides jobs," he said.

Suryani added that the job opportunities can be in the form of live hosts who help sell products, content creators or content creators, and so on.

"I'm sorry to be born and inner, if the offline store store dies, I think it's a long-standing phenomenon when other platforms have also emerged. What the government should have done is to revive, for example Tanah Abang and so on," he concluded.