Everything You Need To Know About The Prohibition Of TikTok Shops In Indonesia

All the reasons for banning the termination of TikTok Shop in Indonesia (photo: Pixabay)

JAKARTA - As a result of the Ministry of Trade's regulation prohibiting social media from concurrently serving as e-commerce, TikTok officially stopped operating TikTok Shop in Indonesia on October 4, at 17.00 WIB.

"Our main priority is to respect and comply with the applicable regulations and laws in Indonesia. Thus, we will no longer facilitate e-commerce transactions within TikTok Shop Indonesia, effective as of October 4, at 17.00 WIB," TikTok wrote in its official statement.

However, Bytedance's social media admitted that it would continue to coordinate with the Indonesian government regarding their steps and plans in the future.

Previously, the government had just issued a new regulation regarding trade through an electronic system (PMSE), one of which was to prohibit social media from making buying and selling transactions. This rule is contained in the Minister of Trade Regulation Number 31 of 2023.

The Minister of Trade (Mendag) Zulkifli Hasan said he would impose sanctions in the form of revocation of permits (highest sanctions) for social media businesses (medsos) that still serve buying and selling transactions.

The sanctions are contained 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 also emphasized that social commerce such as TikTok Shop should not be used as a platform for selling or transacting. Instead, it is only allowed for promotions, such as Instagram, Facebook, and others.

If you look at the wider scope, Indonesia is not the only country blocking TikTok Shop or similar services. The European Union, the United States (US), and India have now begun to tighten regulations against digital platforms.

As TikTok explained on September 27, in India, TikTok has not operated since 2020, even before the birth of TikTok Shop.

Even in China itself, there are rules for Antitrust Guidelines for Platform Economy (2021) and Anti-Monopoli Regulation of Digital Platforms (2022), which prohibit monopolistic practices through the use of data, algorithms, and technology.

The British government has also banned officials from installing TikTok on mobile phones and office devices. The decision was taken after the local government received input from the National Cybersecurity Center.

The ban on the use of TikTok is said to be in line with similar actions taken by international partner countries, such as the United States, Canada, and the European Commission.