Reasons For The Government To Ban Sales On Social Media: Protect MSME Actors To Personal Data

Illustration of selling on social media (Photo: Antara/Aprillio Akbar)

YOGYAKARTA President Joko Widodo held a limited meeting at the Presidential Palace complex on Monday, September 25, 2023. One of the things discussed at the meeting was the issue of the prohibition of buying and selling directly on social media which concurrently serves as e-commerce (social e-commerce) such as TikTok Shop. So, what is the reason the government prohibits selling on social media? Here's a summary of the information for you

Minister of Communication and Information (Menkominfo) Budi Arie Setiadi revealed the government's reason for banning social e-commerce from buying and selling directly. Budi said the government wanted to protect micro, small and medium enterprises (MSMEs).

"We have to arrange the first one, not a free trade song but a fair trade, fair trade. So how can social media not immediately become e-commerce. For what reason? Because this is an algorithm. In principle, the state must be present to protect our domestic MSME players who are fair, don't keep the goods there being slammed at low prices, we are klenger," Budi said after following the meeting with President Jokowi, quoted by VOI, Tuesday, September 26, 2023.

In addition to protecting MSME actors, said Budi, the government also wants to protect the personal data of Indonesian citizens.

There are concerns about social e-commerce such as TikTok misusing the person's personal data for business purposes.

"We don't want our data sovereignty, our data will be used arbitrarily. If the algorithm is social media, later e-commerce, later fintech, online loans and others," said Budi.

"If the power is taken, is it not dangerous? This is a matter of data sovereignty," he said again.

The Minister of Communication and Information said that currently many social media platforms also intend to switch to social commerce. Therefore, the government also regulates the social media that concurrently serves as e-commerce so as not to harm MSME actors in Indonesia.

"We have to arrange it so that there is no monopoly, natural organic monopilistics. Now it's not organized suddenly everything is controlled by him," said Budi.

Social Media Can Only Promote Goods/Services

Meanwhile, Trade Minister Zulkifli Hasan, who was also present at the meeting, said that social media such as TikTok and Instagram can only promote goods or services. The platform is prohibited from providing payment services and buying and selling transactions.

"You can't make direct transactions, you can't anymore. He's just for promotions like TV, but TV can't accept money, right? He's kind of a digital platform. His job is to promote," said Zulhas, the Minister of Trade's nickname.

An agreement on the ban on selling on social media was taken so that not all algorithms were controlled by social e-commerce. In addition, this policy was taken to prevent misuse of personal data in business interests.

Zulhas stated that this provision would be contained in a new regulation that revised the Regulation of the Minister of Trade (Permendag) Number 50 of 2020.

He conveyed that the revision of the Permendag was immediately signed. Thus, if there is a social e-commerce that violates, there will be a warning tone from the Ministry of Communication and Information.

"After being warned, then closed," said Zulhas.

That's information about the government's reason for banning the sale on social media. Get news updates of other options only on VOI.ID.