TikTok Shop Closes Will Trigger Mass Layoffs, Minister Teten: They Can Sell On Other Channels

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

JAKARTA - Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki assessed that the closing of transaction services on TikTok Shop starting yesterday afternoon, Wednesday, October 4, 2023, will not kill the sellers in it, including causing mass layoffs.

This is because these sellers can still sell or market their wares on other platforms.

"MSMEs are not dead, they can sell on many channels other than TikTok," said Coordinating Minister for SMEs Teten to reporters in Jakarta, Thursday, October 5.

Teten added that sellers can still carry out promotions.

However, he emphasized, what the government regulates in this matter is about transactions that can no longer be carried out on the platform.

In addition, he reminded that now there are also many omnichannel platforms that make it easier for sellers to access various e-commerce channels with only one platform.

"So, there is an aggressive omnichannel, the technology is modern and I think it's easy," he said.

In addition, Teten reiterated that domestic production must be protected.

Domestic production must not die because they lose to compete with imported products that are sold at very low prices and do not meet domestic standards.

He assessed that in addition to harming consumers, it could also harm production.

"That will cause unemployment, if this seller, right, traders on various channels, it is impossible for them to sell on one channel only," he said.