Indef Regarding Prohibition Of Transactions In Social Commerce: MSMEs Must Adjust Business Strategies

Indef Program Director Esther Sri Astuti. Photo: Screenshot/YouTube INDEF

JAKARTA - The Institute for Development of Economics and Finance (Indef) said, when transactions on social media applications or for example such as TikTok Shop are officially closed, micro, small and medium enterprises (MSMEs) must make adjustments to business strategies.

"The ban on social commerce has the potential to increase transactions and e-commerce users. MSMEs must adjust business strategies to market their products online through e-commerce platforms," said Indef Program Director Esther Sri Astuti in a Public Discussion entitled 'Social Commerce Transaction Ban, Is That Right?' virtually, Tuesday, October 3.

Esther said, due to the tremendous increase in the use of social media, this could be an opportunity for MSMEs to increase their market share massively.

"The transaction value and the number of users have increased very rapidly. So, it is better if later the MSMEs are driven in that direction (e-commerce), for what? To be able to go public, go international, go up in class. So, in my opinion, this is actually a very big opportunity, not only for big business businesses, but also for MSMEs," he said.

Even so, Esther assessed, with the ban on transactions through social media applications, such as TikTok Shop, which was recently banned by the government from buying and selling transactions, the MSME actor, who incidentally is a seller or seller, cannot transact there.

But on the other hand, the regulation of the Minister of Trade Regulation Number 31 of 2023, actually regulates that social media can only be used for the promotion of goods and services media.

"But, if there is a payment facility in the sale and purchase transaction, now it should be entered into the e-commerce platform, not social media," he said.

Esther added that the social commerce ban in Indonesia will not stop MSME players.

Because, according to him, marketplaces or online marketplaces in Indonesia are diverse, even being competitors to each other, so MSME players can have other options for selling.

In fact, consumers can also window shopping between one marketplace and another at the same time.

"The impact of banning one social media that provides shopping transactions as well as payments, is actually prohibited from one, it is not too significant in the community. Why? The public, both sellers and buyers, still has many options and alternatives to be able to promote buying and selling," he added.