Seller Complains About Many Cheap Imported Goods, Teten Will Call TikTok

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

JAKARTA - Minister of SME Cooperatives (Menkop UKM) Teten Masduki plans to summon TikTok regarding the findings of imported products sold under the Price of Basic Sellers (HPP) of local products or predaroty pricing on the TikTok platform.

Teten explained, for example, perfume products sell for Rp100, shorts Rp2,000. He assessed that the price did not match the domestic HPP.

"Look, TikTok, right, promised not to do predatory pricing, but I saw earlier online, perfume (priced) Rp100, shorts Rp2000, that's only the HPP, the domestic production cost is definitely above Rp5,000," Teten told reporters at the Kemenkop UKM Building, Jakarta, Monday, August 14.

"Later, I will call again (TikTok)," he added.

According to Teten, imported products sold under HPP are products that enter through crossborders or cross-border businesses. He saw an error from the import duty. Therefore, his party will again call TikTok.

"When I import it, it's normal to enter into the country first, then sell it here. It means, I see that something is wrong with the import duty," he said.

He considered that sales in e-commerce did not make sense because of two things, namely the existence of import duty rates that were too low, so that products from outside could be sold cheaper and there was no minimum entry limit for goods.

"Our MSME products cannot compete, the HPP level alone cannot afford it," he concluded.

Previously, the Ministry of Cooperatives and Small and Medium Enterprises (KemenKopUKM) had summoned TikTok to hold a discussion at the Kemenkop UKM Building in Jakarta, on Wednesday, July 26.

On that occasion, the two discussed the issue of Project S from TikTok Shop which is suspected to threaten the domestic product market and the unfair application of trade in the marketplace.

TikTok Indonesia Head of Communication Anggini Setiawan ensured that the Project S issue was not true.

"We have given information to the Ministry of Cooperatives and SMEs that it is not true that we have the intention to create our own e-commerce product or to become a whole seller (Project S) who will compete with local sellers in Indonesia," said Anggini.

He emphasized that TikTok does not open a cross-border business or cross-border business in Indonesia to protect domestic MSME products.

"It is not true that we will launch an Indonesian cross-border initiative and we are very happy that we can finally convey this directly to the Ministry of Cooperatives and SMEs today," he said.