Dear Pro member,
The Indonesian Ministry of Trade’s recent announcement of revised e-commerce regulations has sent ripples through the digital landscape, casting a shadow of uncertainty over the future of TikTok Shop in Indonesia. Trade Minister Zulkifli Hasan’s statement in Jakarta unveiled a one-week grace period for TikTok Shop to either transform into a standalone app or face an imminent shutdown.
The heart of the matter lies in new rules that explicitly forbid social commerce platforms like TikTok from facilitating in-platform transactions and utilizing social media user data for e-commerce endeavours. This regulatory move stems from concerns that TikTok Shop, an integrated feature within the TikTok app, maybe consolidating an unhealthy monopoly in the market.
The Indonesian government’s unease with TikTok isn’t new, with President Jokowi among those voicing criticism. He suggests that platforms like TikTok Shop have played a role in the decline of MSMEs and traditional markets.
TikTok, in response, expresses deep concern about the potential impact on millions of sellers and affiliate creators who rely on TikTok Shop. Launched just over two years ago, TikTok Shop rapidly gained popularity, accounting for a significant portion of the country’s e-commerce landscape.
As Indonesia grapples with the evolving digital commerce landscape, the fate of TikTok Shop remains uncertain, leaving millions of livelihoods hanging in the balance.
Sainul,
Editor.
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