TikTok Shop Officially Can No Longer Serve Sale And Purchase Transactions

JAKARTA - The government through the Ministry of Trade has officially banned social media platforms, including TikTok, from serving buying and selling transactions, such as TikTok Shop's current services.

This rule is contained in the Regulation of the Minister of Trade (Permendag) number 31 of 2023 concerning Business Licensing, Advertising, Guidance, and Supervision of Business Actors in Trade Through Electronic Systems (PMSE).

Adapun Permendag Nomor 31 Tahun 2023 yang sejak kemarin resmi berlaku.

This regulation is a revision of the Minister of Trade Regulation Number 50 of 2020 which previously took effect.

Trade Minister Zulkifli Hasan said the issuance of this rule does not prohibit social media applications as a means of trading such as TikTok Shop.

However, reorganizing in accordance with the new provisions is that there should be no buying and selling transactions in it.

"We organize this, we arrange it. If there are several other countries that prohibit it, we don't. We arrange it, so that it's not a free competition, but fair and fair competition. Not free but fair but fair. That's the big point," he said at a press conference, at the Ministry of Trade Office, Jakarta, Wednesday, September 27.

Zulhas, as Zulkufli Hasan is familiarly called, said the platform manager was given one week to make a transition and socialize. After that, buying and selling transactions directly on social media platforms are no longer allowed.

"I have also asked my friends to send a letter. Everything in this field, apart from conveying it through a press conference, please write it down. Because this Permendag has been promulgated, it has been in effect," he said.

In the Minister of Trade Regulation Number 31 of 2023, continued Zulhas, product promotion activities can only be carried out by social-commerce platforms.

This means that social media platforms that facilitate product promotion content must replace their operating licenses as social commerce platforms.

"I ask that the business ecosystem in the digital platform field can develop well but not kill one another," said Zulhas.

Currently, TikTok Shop itself has not obtained a permit as a social-commerce. Therefore, TikTok Shop needs to update its permission to carry out current activities.

Social commerce, he can do advertisements like TV, TV is an advertisement, he can promote, please please, but, transactional can't open a shop, you can't open it just say you can't sell the credit directly, right there, promotions can be like TV media," he said.