After TikTok Shop Closed, Teten Says 20 Percent Of Buyers Switch To Other Marketplaces

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

JAKARTA - Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki said, as many as 20 percent of the number of buyers had switched to other e-commerce after TikTok Shop closed in October 2023.

"So, after the TikTok Shop was closed, 20 percent returned to multiple channels. Yesterday TikTok could only promote its products on TikTok on social media, but then the spending spread across several existing e-commerce, such as at Tokopedia, Bukalapak, Shopee, and Lazada," said Minister Teten in a working meeting (raker) with Commission VI of the Indonesian House of Representatives in Jakarta, Thursday, November 23.

Meanwhile, as many as 80 percent of the others, said Teten, are active TikTok Shop users who make transactions just because they are tempted by the service.

"The 80 percent is indeed a possibility of people who didn't intend to go shopping before, but because of the advanced artificial intelligence (AI) technology, they were led to shop," said Teten.

Teten said, TikTok Shop may resume operations as long as the platform from China has a legal entity in Indonesia and must obtain a license. Because, if not, Teten is worried that it will be risky for domestic MSME players.

The Ministry of Cooperatives and SMEs has leaked that the TikTok platform will join one of the e-commerce companies in Indonesia to operate TikTok Shop again.

This was revealed by the Assistant Deputy for Financing and Investment of the Deputy for SMEs at the Ministry of Cooperatives and SMEs, Temmy Satya Permana, after a media discussion with the theme 'MSMEs Rise Class Towards Golden Indonesia' held by Forwakop at the Kemenkop UKM Building, Jakarta, Friday, November 17.

"I've heard several versions, but I haven't dared to say anything. It's possible that he (TikTok) will join (e-commerce), because if it's to make his own company, I don't think so," he said.