Observer: The Government's Strangeness In Limiting TikTok Shop

Illustration. (Photo: Unsplash)

JAKARTA - Digital economy observer Ignatius Untung opposes the government's discourse to ban the use of the TikTok Shop application.

Ignatius Untung assessed that he did not see a strong reason that social media should be separated from e-commerce and there is also no solid basis to claim that TikTok Shop was involved in the monopoly practice of e-commerce in Indonesia. "Not seeing the basis for having to be separated. If the data problem, there has been cross-platform data exchange. Then if it harms MSME actors (Micro, Small and Medium Enterprises), not really," he said in Jakarta on Friday, September 15. Ignatius Untung also added, currently the recommendation of the TikTok algorithm which aims to direct users to certain products based on its online behavior, is also common on other technology platforms. Then, Untung also suggested to stakeholders to MSMEs to make public tests more open to see their impact through studies. "Often the rules are issued, but the study is not enough. Not to mention the impact on MSMEs whose turnover is down. So when exiting the rules, there must be a study, what impact, how many. It doesn't mean it can't be done, but it won't be done," continued Untung. In addition to Ignatius Untung, the Business Competition Supervisory Commission (KPPU) also disagrees with the government which will ban or close live shopping activities on social media (medsos) such as TikTok Shop. "If a company has an e-commerce platform and sells products, then the company has access to payment agents, advertising, etc, it is only a characteristic of the ecosystem," said Afif Hasbullah as the Chair of the KPPU, as reported by The Jakarta Post on Thursday, September 14 yesterday.

Nailul Huda, a researcher from the Institute for Development of Economics and Finance (Indef) also believes that TikTok Shop should not be banned from operating as long as it benefits MSME producers.

"Actually, it doesn't matter as long as it's profitable from the side of local MSME producers. So I don't support it if social e-commerce is completely banned," said Nailul Huda in the Business Zone on Metro TV, Monday, September 18, 2023.

Meanwhile, the Indonesian E-Commerce Association (idEA) provides input to the government to conduct public trials regarding the revision of the Minister of Trade Regulation (Minister of Trade Regulation) number 50 of 2020.

"Public trials of this regulation (revision of Permendag 50/2020) are very important, lest the rules suddenly have been ratified, but instead end up making fun in the community," said IdEA Chairman Bima Laga on Saturday, September 16.

Previously, the government would evaluate the existence of TikTok Shop in Indonesia. This happened because of the integration between social media and e-commerce carried out by TikTok Shop, it should not be allowed in Indonesia.

However, if the revision of Permendag 50/2020 continues, Indonesia will experience setbacks and will no longer be the same as other developed countries. This is because online sellers should not receive discrimination because they dare to embrace technology.

They (online sellers) should have received praise for participating in encouraging the progress of Indonesia's digital economy, and inspiring traditional sellers to be more open to innovation and technology.