The Ministry Of Trade Explains Reasons For Giving TikTok Shop Permits To Resell

TikTok Shop (Photo: Unsplash)

JAKARTA - The Ministry of Trade (Kemendag) has opened its voice regarding the reason for giving permission for the TikTok Shop to return to selling. One of them is because TikTok decided to partner with Tokopedia as a local e-commerce.

As is known, TikTok Shop officially returned to operation on 12 December. The operation of this TikTok Shop coincides with the online shopping day event 12.12.

The Director General of Domestic Trade at the Ministry of Trade, Isy Karim, said that initially the Ministry of Trade gave TikTok the option that if they still want to do business in the country, they must open a new e-commerce.

However, continued Isy, because the process of opening an e-commerce company has various requirements such as having to have an NPWP and taking a long time, TikTok took the initiative to cooperate with Tokopedia as a local e-commerce.

If it becomes an e-commerce itself, it must have certain conditions, there must be a domestic business entity and must have an NPWP. Meanwhile, when they want to apply for a permit, the BKPM has a system improvement. So the choice is then that TikTok Shop collaborates with Tokopedia or e-commerce in the country," said Isy to the media, at the Ministry of Trade, Jakarta, Wednesday, December 20.

Isy said TikTok's choice to collaborate with Tokopedia was not a problem. However, continued Isy, TikTok must comply with the Regulation of the Minister of Trade (Permendag) Number 31 of 2023.

Furthermore, Isy said that in Permendag 31/2023 it was explained that no transactions should be made on social media platforms.

"It's actually okay (to collaborate with Tokopedia), but it should be on the TikTok Shop there should be no transactions," said Isy.

For your information, after being allowed to return to operation and partnering with Tokopedia, shopping transactions on TikTok Shop are still on the same platform.

Related to this, Isy admitted that he would give approximately four months to transfer all of his trade transactions to Tokopedia.

"We are still deepening this application to what extent, it must be separated. The minister gave him 3-4 months," he said.

Isy also said that this leniency was not only given to TikTok Shop but also to Shopee to comply with Permendag 31/2023.

"It's the same as other e-commerce like Shopee with its cord border. Because the app is overseas in TikTok Shop, so there needs to be adjustments and time," he said.