GoTo Duet With TikTok, Minister Teten Reminds These Five Important Things

Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki. (Photo: Theresia Agatha/VOI)

JAKARTA - PT GoTo Gojek Tokopedia Tbk (GOTO) and TikTok have officially established strategic partnership cooperation to strengthen Indonesia's digital economy growth, on Monday, December 11.

This collaboration will focus on empowering and expanding the market for national MSME players.

Related to this, Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki reminded platforms from China, TikTok to comply with regulations and prioritize MSMEs in Indonesia.

He emphasized that TikTok and GoTo comply with existing regulations in Indonesia, especially Permendag Number 31 of 2023 concerning Business Licensing, Advertising, Development, and Supervision of Business Actors in Trade Through Electronic Systems (PMSE).

"TikTok and GoTo must participate in developing government programs, empowering our MSMEs and building a sustainable business model," said Minister Teten in a written statement received by VOI, Tuesday, December 12.

Teten assessed that there are five policy policies in Permendag 31/2023 that must be obeyed by TikTok and GoTo.

The first is about multichannel policies in e-commerce, namely compliance with the e-commerce separation rules from social media.

"Second, TikTok and GoTo are prohibited from providing space for dumping goods in their home countries or imported goods at lower export prices than their home countries. Therefore, merchants who sell imported products must be equipped with import documents so as not to sell illegal goods," said Teten.

Third, Teten also asked TikTok and GoTo not to sell imported goods whose documents were incomplete. Imported goods sold online must have a distribution permit from BPOM, have SNI, and have halal certification.

"All of that needs to be equipped to protect consumers in Indonesia," he said.

Fourth, TikTok and GoTo are asked not to sell goods whose prices are below the cost of goods sold (HPP) in the country. The goal is to protect domestic producer MSMEs.

Fifth or lastly, online platforms including TikTok and GoTo should not sell their own products.

"This is to avoid discrimination against local brands or products being sold on their platforms," said Teten.

Regarding the TikTok issue that invests in Tokopedia, Teten considers it a Business to Business (B2B) affair between TikTok and GoTo, where investment in e-commerce is indeed allowed, including foreign investment.

"We only remind you of the commitments from the GoTo that have been conveyed to us previously, that they really want to prioritize MSME products," he added.