Trade Minister Zulkifli Hasan Says Tiktok Shop Is Not Allowed To Make Transactions On The Application

Minister of Trade (Mendag) Zulkifli Hasan. (Photo: Doc. Ministry of Trade)

JAKARTA - The government through the Ministry of Trade strictly still prohibits Tiktok Shop from making transactions or selling goods in their social media applications. Trade Minister Zulkifli did not want to talk too far about the plan to merge Tiktok with Tokopedia through an acquisition scheme.

Previously, according to Bloomberg sources, Tiktok, a Chinese social media giant made Bytdace, acquired Tokopedia as much as 75 percent and became the controller of the green-style eCommerce.

"It's okay (to sell) but make permission for yourself. If the shop directly (on one Tiktok application) can't," said Zulkifli when met by the media in the SCBD area, Jakarta, Monday, December 11.

Zulkifli also stated that in the two weeks that Tiktok was circulating that he would partner with Indonesia's eCommerce, his party had not received any information or discussions with him.

"There is no (discussion with Tiktok) yet," continued Zulkili.

On the same occasion, the Director of Trade Through the Electronic System and Services Trading of the Ministry of Trade, Rifan Ardianto, also received the same opinion as Minister Zulkifli Hasan. On the other hand, he also reminded that if Tiktok wants to sell again through the application, transactions cannot be carried out and only limited to promotions.

"In regulations, it is not allowed (social media applications to transact) and refers to Permendag 31," continued Rifan.

In Permendag 31, it is known that the regulation is the legal basis for prohibiting social media platforms from serving buying and selling transactions, such as the Tiktok Shop service. Permendag also clearly regulates that there is no link between social media that gives birth as social commerce or serves e-commerce in one application.

For information, TikTok Shop has finally officially returned to Indonesia. This was announced by TikTok Indonesia in an announcement uploaded on the official TikTok blog.

The return of TikTok Shop to Indonesia was pursued through a partnership with PT Tokopedia (Tokopedia). TikTok injected funds of US $ 1.5 billion or around Rp. 23.4 trillion (assuming US $ 1 = Rp. 15,609).

Tiktok said that this business step is their long-term commitment to supporting Tokopedia's operations in Indonesia through the TikTok platform, especially through TikTok Shop.

They also ensure that partnerships with Tokopedia have no effect on Tokopedia's share ownership portion at PT GoTo Gojek Tokopedia Tbk (GoTo), as the group of companies that oversees Tokopedia.