Ministry Of Trade Denies Banning TikTok Shop From Serving Sale And Purchase Transactions Due To Shopee Cs Pressure

Director General of Domestic Trade (PDN) Isy Karim. (Mery Handayani / VOI)

JAKARTA - The Ministry of Trade (Kemendag) denies that the ban on TikTok Shop serving buying and selling transactions is due to encouragement from competing trading or marketplaces such as Shopee cs.

As is known, the government has just issued a new regulation regarding trade through electronic systems (PMSE). One of the regulations in it is to prohibit social media from buying and selling transactions. This rule is contained in the Minister of Trade Regulation Number 31 of 2023.

Director General of Domestic Trade (PDN) Isy Karim said, not only TikTok Shop is regulated. He said, Shopee cs as a marketplace is also regulated in relation to direct foreign trade or cross-border.

Isy emphasized that the Minister of Trade Regulation Number 31 of 2023 which is a revision of the Minister of Trade Regulation 50 of 2020 applies to all of them.

"Not really. Shopee is also subject to regulations (sales should not be below) 100 US dollars (per item), this is not for any of the platforms, but for all," said Isy at the Asemka Wholesale Center Market, West Jakarta, Friday, September 29.

Previously reported, the Minister of Trade (Mendag) Zulkifli Hasan emphasized that he would impose sanctions in the form of revocation of social media business licenses (medsos) that still serve buying and selling transactions. The revocation of this permit is the highest sanction.

This sanction is regulated in the Regulation of the Minister of Trade (Permendag) Number 31 of 2023 concerning Business Licensing, Advertising, Development, and Supervision of Business Actors in Trade Through Electronic Systems. This regulation just took effect a few days ago.

Zulhas, as Zulkifli Hasan is familiarly called, said that violating social media would be warned first. Then,

The social media will later be included in the priority list of supervision from the government.

Furthermore, continued Zulhas, the method will also be blacklisted or blacklisted. Also, temporary blocking of services by related agencies.

"Third, if not, the permit will be revoked so that strict action can be taken, resulting in a positive ecosystem in this field," he said in a press conference, written Thursday, September 28.

Quoting article 21 in the Minister of Trade Regulation Number 31 of 2023, it is regulated that social-commerce social media models are prohibited from making buying and selling transactions. This rule also prohibits social-commerce and e-commerce from becoming producers.