Officially Closing Buying and Selling Services, Coordinating Minister for SMEs: Indonesia is Not Anti-TikTok Shop

Coordinating Minister for SMEs Teten Masduki (Photo: Doc. Kemenkop UKM)

JAKARTA - Minister of Cooperatives and SMEs Teten Masduki revealed that Indonesia is not anti-TikTok Shop. He said that the assumption that TikTok can no longer do business in Indonesia is a mistake.

As is known, TikTok Indonesia has officially stopped buying and selling transactions on the TikTok Shop service since Wednesday, October 4 at 17.00 WIB. This step is in response to new regulations issued by the Indonesian government, namely Minister of Trade Regulation Number 31 of 2023.

“Indonesia is not anti-TikTok Shop. Currently, there is an opinion that TikTok is no longer allowed to do business in Indonesia, this is not true. "Indonesia is very open to foreign investment," said Teten, quoted from his official Instagram account @tetenmasduki_, Thursday, October 5.

Furthermore, Teten explained that the Indonesian government did not prohibit TikTok Shop, only that the government wanted this company from China to have a legal entity in Indonesia.

"And have a new permit in accordance with Minister of Trade Regulation Number 31 of 2023," wrote Teten.

Currently, continued Teten, TikTok only has permission as a Foreign Trade Company Representative Office (KP3A). Because it only has this permit, TikTok cannot trade in Indonesia.

“The government must enforce the rules. All parties doing business in Indonesia must comply with Indonesian law. "We must appreciate TikTok Shop, which since Wednesday, October 4, at 17.00 p.m. Western Indonesian Time (WIB), has closed the yellow basket feature and will immediately make adjustments in line with applicable regulations," said Teten.

As previously reported, TikTok Indonesia announced that it would stop buying and selling transactions on the TikTok Shop service starting today, Wednesday, October 4 at 17.00 p.m. WIB. This step is in response to new regulations issued by the Indonesian government.

As is known, the government has just issued new regulations regarding trading via electronic systems (PMSE). One of the provisions in it is to prohibit social media from carrying out buying and selling transactions. This rule is contained in Minister of Trade Regulation Number 31 of 2023.

TikTok Indonesia management said that their main priority is to respect and comply with the regulations and laws in force in Indonesia.

"As such, we will no longer facilitate e-commerce transactions within TikTok Shop Indonesia, effective October 4, at 17.00 p.m. WIB," wrote management in an official statement, quoted Wednesday, October 4.

"We will continue to coordinate with the Indonesian government regarding our future steps and plans," he added.