If Social Media Is Allowed To Continue Selling, MSMEs And Traders In Conventional Markets Can Immediately Roll Out The Tikar

Photo by Rendy Novantino on Unsplash

JAKARTA - Parliamentary support for the prohibition of selling on social media is a form of support for the creation of justice and business for all traders. However, the government must make derivative regulations of this policy based on the element of balance between the digital and conventional markets.

This was conveyed by Digital Expert, Anthony Leong, who assessed that the fast movement of the Government and the DPR in collaborating to produce the policy was very appropriate. The birth of the new regulation is considered as evidence for legislative and executive institutions upholding every public complaint.

"The DPR and the Government are quick to respond to problems in the community. Of course, this collaboration is very good because we need to maintain a good business ecosystem, how to balance the online and offline world," said Anthony Leong, Friday, September 29.

The ban on social commerce practices where social media and e-commerce (electronic trade) must be separated must be born in line with the issuance of Permendag Number 31 of 2023 concerning Provisions for Business Licensing, Advertising, Development, and Supervision of Business Actors. This policy is in response to the lack of conventional markets following digital trade which offers very cheap prices in social commerce.

The excitement of the conventional traders was also voiced by the DPR. Anthony appreciated the support from the DPR so that the Government immediately issued a policy to help traders in conventional markets.

The voices of the DPR have existed since this issue has not been in the spotlight too much. So the pressure from the DPR plays a very important role in the birth of policies from the Government so that there is a balance of trade in the digital and conventional realms," said the Deputy Secretary General of BPP HIPMI.

Anthony said that the practice of social commerce such as TikTok Shop, which combines the concept of social media and e-commerce on one platform, has recently dominated trade in Indonesia. According to him, this affects the balance of trade.

"How can applications that exist abroad such as TikTok Shop dominate now and go beyond the reasonable limits of prices. Of course they can also control us in the form of algorithms, in the form of behavior and so on," explained Anthony.

Anticipatory steps from the DPR and the Government regarding the ban on TikTok Shop buying and selling transactions are considered the right step to protect Micro, Small and Medium Enterprises (MSMEs) and traders in conventional markets. If there is no intervention, said Anthony, the practice of social commerce can kill conventional markets.

"Of course this is also a form of anticipation in the context of efforts to save MSMEs in Indonesia. And we really have to be firm on foreign applications such as Tiktok which controls our market with this extraordinary amount," explained the CEO of the Digital Tower.

Apart from the issuance of Permendag Number 31 of 2023, Anthony explained that many conventional markets in Indonesia have begun to be abandoned by their customers. The reason is the development of the digital technology industry which has penetrated the practice of buying and selling.

"Not only helping with the protection of MSMEs, the newly issued regulations also ensure that there is a divide between social media and e-commerce so that it is not monopolized by one platform," said Anthony.

The Padjadjaran University (Unpad) School of Communication Doctoral Program also assessed that this new policy related to social commerce practices could be a barrier to the forms of monopoly of social media platforms that penetrate the world of e-commerce. In particular, Anthony conveyed, for TikTok Shop, digital business actors are also complained about from special platforms for electronic trade.

"This policy is a bulwark for the potential of TikTok using the alogarithm of its users which is used as a predatory pricing step so that it is better able to protect MSME business actors who sell similar products in e-commerce," he said.

Even so, Anthony hopes that the Government can create derivative regulations that will provide balance and justice between online and conventional business actors. This is in line with the message conveyed by the DPR.

Anthony even encouraged the Government to initiate a special platform for local MSME players. Thus, Indonesian MSME products are no less competitive with foreign products.

"As the DPR reminds us, the Government must be able to create a regulation in protecting our MSMEs in the future. For example, by prioritizing applications that focus on local Indonesian products. So we can compete with foreign applications," he urged.

"Our market is big, so there must be regulations that support, which side by side with domestic producers and consumers. So that foreign exchange does not go outside," added Anthony.

Regarding complaints from content creators after the issuance of Permendag Number 31 of 2023, Anthony assessed that the new regulation would not actually have a negative impact on endorsers.

This is because content creators can still make promotions on social media directed to buy goods promoted through e-commerce platforms or conventional stores.

"Because they can still promote the products they endorse so that they will not eliminate the livelihoods of creators so that the digital economy's climate is maintained properly," explained Anthony.