Minister Teten Appreciates TikTok Shop's Steps to Close Buying and Selling Transaction Services

Menteri Koperasi dan UKM (Menkop UKM) Teten Masduki. (Foto: Dok. ANTARA)

JAKARTA - TikTok Shop is starting to close its business and services today, Wednesday, October 4, starting at 17.00 WIB.

This is in line with the issuance of Minister of Trade Regulation (Permendag) Number 31 of 2023 concerning Business Licensing, Advertising, Development and Supervision of Business Actors in Trading Through Electronic Systems (PMSE).

Responding to this, the Indonesian Government through the Ministry of Cooperatives and SMEs (Kemenkop UKM) appreciated the steps taken by TikTok.

"The government appreciates TikTok Shop because it complies with existing regulations in Indonesia and understands the economic impact that we need to protect," said Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki in a written statement, Wednesday, October 4.

This closure was carried out after the Ministry of Trade gave TikTok Shop an additional one week to comply with the provisions contained in the new regulation.

Because, in accordance with Article 67 of Minister of Trade Regulation Number 31 of 2023, TikTok Shop must close its business and services from September 25 2023 or when the regulation is issued.

Nevertheless, said Teten, sellers and affiliates can still promote their products on TikTok because only e-commerce services are closed and they can become sellers and affiliates of products on other marketplace platforms.

"That way, the business run by sellers and affiliates will not be disrupted and can continue to run," he said.

Teten hopes that TikTok Shop can quickly fulfill its obligations to sellers (traders), affiliates and consumers.

Through this new regulation, the government is trying to create a sustainable business ecosystem both online and offline, which protects MSMEs and domestic products.

For your information, the official TikTok.com page states that TikTok Shop Indonesia will stop facilitating e-commerce transactions as of October 4 2023, starting at 17.00 WIB, in order to respect and comply with regulations in Indonesia.

It is known that TikTok will continue to coordinate with the government regarding the company's future steps and plans.

Even though it will close its services, in an electronic letter (e-mail) to traders circulating on the timeline, TikTok admitted that it would remain committed to providing full support for order fulfillment, both existing and ongoing, along with customer service.