Jokowi Says TikTok Shop Causes MSME Sales to Markets Fall

JAKARTA - President Jokowi said that the impact of TikTok Shop has caused sales and production in the micro, small and medium enterprises and conventional markets to plummet.

Jokowi believes that TikTok should only act as social media, not as a media economy.

"This has an effect on MSMEs, on production in small businesses, micro businesses and also on the market. In the market, in some markets it has started to decline due to the invasion... this should be about social media, not the media economy," said President Jokowi quoting Antara, Saturday, September 23.

Due to price competition in e-commerce, the President emphasized that the Government through the Ministry of Trade has prepared regulations to control electronic commerce or social media-based e-commerce.

The Head of State explained that the regulations being drafted would regulate the application's function as a social media and trading platform or economic media.

Currently, these regulations have been prepared by various ministries and are awaiting approval at the Ministry of Trade.

"The regulatory position is still in the Ministry of Trade. Everything else has been completed, it remains with the Ministry of Trade. We are waiting," said the President.

On a previous occasion, the Director General of Domestic Trade at the Ministry of Trade, Isy Karim, said that detailed regulations regarding the TikTok Shop business activities themselves would be included in the revision of Minister of Trade Regulation Number 50 of 2020 concerning Provisions for Business Licensing, Advertising, Guidance and Supervision of Business Actors in Trading Through Electronic Systems (PPMSE ).

The Ministry of Trade emphasized that it is not banning TikTok Shop in Indonesia, but will regulate the rules of the business game on a par with other platforms.