TikTok Shop Is Considered Still Breaking The Rules, Minister Teten Reveals The Reason

JAKARTA - Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki admitted that TikTok Shop still violates the Regulation of the Minister of Trade (Permendag) Number 31 of 2023 concerning Business Licensing, Advertising, Development and Supervision of Business Actors in Trade Through Electronic Systems.

"We at the Kemenkop UKM have clearly carried out technical coordination between ministries and TikTok which still violates Permendag Number 31 of 2023," Teten told reporters at the Kemenkop UKM office, Jakarta, Monday, February 19.

Teten said, for his follow-up, his party was still waiting for coordination with the Minister of Trade (Mendag) Zulkifli Hasan. "Yes, we will wait for the Trade Minister," he said.

Regarding the plan to revise the Permendag, Teten has proposed that there be no predatory pricing in the marketplace. However, until now the proposed production principal price (HPP) has not been discussed further at the Ministry of Economic Affairs.

"That, right, was discussed in a joint meeting at the Coordinating Ministry for the Economy. So, the meeting was there. Yesterday I spoke with the Coordinating Ministry to hold a joint meeting again," he said.

According to Teten, it is necessary to improve the revision of Trade (Permendag) Number 31 of 2023. This is because the trial period for the revision of the Permendag has been running for about three months.

"So, at that time we realized that the Minister of Trade 31 of 2023 was not perfect and we will perfect it after the Permendag was valid for three months. Right, now it's five months, it's time to evaluate it. One of the things we proposed at the Permendag has not regulated predatory pricing. If we look at learning from China's experience about the prohibition of not being allowed to sell under the HPP," he said.

On the same occasion, Chairman of the Business Competition Supervisory Commission (KPPU) M. Fanshurullah Asa said that his party would see and coordinate with the Ministry of Trade (Kemendag) to maintain investment, partnership commitments as well as maintain Micro, Small and Medium Enterprises (MSMEs), so that later there would be no wrong steps.

"We will also hold an audience with the Ministry of Trade to see how to maintain it," he said.

"We want to be as stated that we must be consistent and committed that if he is on social media, he plays on social media, don't play games on his e-commerce, and not tokopedia only so he imposes obligations, but has TikTok consistently implemented its function as social media," he added.