SWH Center Supports Trade Minister's Policy To Ban TikTok Shop Services

Founder and Chairman of the Sharia Foundation Hardjuno Wiwoho (SHW) Center, Hardjuno Wiwoho. (Photo: Special)

JAKARTA - Founder and Chairman of the Sharia Foundation Hardjuno Wiwoho (SHW) Center, Hardjuno Wiwoho supports the decision of the Minister of Trade (Mendag) Zulkifli Hasan to ban online trading services through the TikTok Shop marketplace application.

This SHW Center support is because this Chinese company has killed many people's businesses in the Micro, Small and Medium Enterprises (MSMEs) sector in Indonesia.

"We support this decision. So far, TikTok Shop has become a predator for the MSME sector. Even though the national economy is very dependent on this small business sector," said Hardjuno in Jakarta, Wednesday, October 4.

Hardjuno's statement was in response to the TikTok Shop which implements predatory pricing which has an impact on the collapse of MSME actors. According to Hardjuno, the state must be present to protect its people, especially people who are struggling in the MSME sector.

Because history proves, the MSME sector is the main locomotive of the economy in times of crisis.

"Therefore, for the sake of our sense of nationality and nationalism, it is mandatory for all of us to protect the business interests of the people on this earth," he said.

Hardjuno continued that the people's business sector must be protected by the state. Because they will not be able to compete with large-scale companies.

"I think Tiktok Shop, with large financial resources, is able to offer products at a much lower price than local MSMEs. This is clearly unfair," he said.

Hardjuno emphasized that the business model used by TokTok creates inequality in business competition. Where MSMEs often lose in defending their market share.

"Honestly, we as small business actors in Indonesia are less competitive. Our turnover has decreased significantly as a result of competition with products that are sold at very low prices through Tiktok Shop," he said.

This, said Hardjuno, confirms that this TikTok Shop-style trading model is a threat to MSMEs being more real.

"This Tiktok Shop is a predator for us small businesses," he said.

Therefore, he calls for justice and equality in business competition. The way, the government can develop more assertive rules in regulating trade practices through social commerce platforms, including cross-border trading and taxation issues. "This aims to protect the interests of national products and the growth of MSMEs," he said.

Furthermore, Hardjuno emphasized that the innovation and protection of MSME interests, which are the backbone of the economy, must be considered, including rearranging social commerce platforms such as Tiktok Shop so as not to harm the national economy. "With these steps, Indonesian MSMEs can continue to grow and compete fairly in the changing digital era," he hoped.

For Hardjuno, MSMEs must become a new economic force, so that MSME products are increasingly recognized and in demand by the public both nationally and internationally. Moreover, there are so many MSME potentials in this country.

"We at the SHW Center have opened two MSME business units, namely drinking water and chicken farming and running," he added.

In the future, he hopes that Indonesian MSMEs will be stronger so that they can penetrate the global market.

"We must be optimistic to continue producing competitive goods that penetrate even wider markets," he asked.

He emphasized that the MSME sector is currently the economic savior when large industries are experiencing setbacks due to monetary and global economic problems.

"Many times the MSME sector has been a savior when large industries are constrained and even face setbacks, because its flexible, resilient nature and mentality are the main keys," he said.

He hopes that the MSME sector will be able to synergize with each other to open new entrepreneur fields in order to reduce the unemployment rate in Indonesia.

"Hopefully, with so many MSMEs in Indonesia, they can continue to collaborate and synergize so that they can prepare jobs," he said