Announcement! Trade Minister Zulhas Threatens To Revoke Social Media Business Licenses That Still Serve Sale And Purchase Transactions

Minister of Trade Zulkifli Hasan. (Photo: Doc. ANTARA)

JAKARTA - The Minister of Trade (Mendag) Zulkifli Hasan emphasized that he would impose sanctions in the form of revocation of social media business licenses (medsos) that still serve buying and selling transactions. The revocation of this permit is the highest sanction.

This sanction is regulated in 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. This regulation just took effect a few days ago.

Zulhas, as Zulkifli Hasan is familiarly called, said that violating social media would be warned first. Then, the social media will later be included in the priority list of government supervision.

Furthermore, continued Zulhas, the method will also be blacklisted or blacklisted. Also, temporary blocking of services by related agencies.

"Third, if not, the permit will be revoked so that strict action can be taken, resulting in a positive ecosystem in this field," he said in a press conference, written Thursday, September 28.

Quoting article 21 in the Minister of Trade Regulation Number 31 of 2023, it is regulated that social-commerce social media models are prohibited from buying and selling transactions. This rule also prohibits social-commerce and e-commerce from becoming producers.

Meanwhile, the sanctions rule is contained in Article 50 of the Minister of Trade Regulation Number 31 of 2023. The rules are confirmed in articles 58 and 59.

Article 59 paragraph 1 explains that business actors who make, provide facilities, and/or disseminate Electronic Ads that violate their obligations as referred to in Article 27 are subject to administrative sanctions in the form of written warnings.

Meanwhile, in paragraph 2 it is explained that the written warning as referred to in paragraph (1) is given at most 3 (three) times within a grace period of 14 (fourteen) calendar days starting from the date the previous warning letter was issued.

"If within a period of time as referred to in paragraph (2) business actors continue not to carry out their obligations as referred to in Article 27, administrative sanctions will be imposed in the form of inclusion in the priority list of supervision," reads Article 59 paragraph 3.

Furthermore, paragraph 4 states that administrative sanctions in the form of inclusion in the priority list of supervision as referred to in paragraph (3) are given with a maximum grace period of 7 (seven) calendar days.

"If within a period of time as referred to in paragraph (4) business actors continue not to carry out their obligations as referred to in Article 27, they will be subject to administrative sanctions in the form of revocation of Business Licensing," reads Article 59 paragraph 5.