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Minister Teten worries TikTok may become 'monopoly' in Indonesia
The cooperatives and SMEs minister has raised fears over TikTok expanding into digital sectors beyond video sharing and potentially threaten the country's small businesses, which form the backbone of the national economy.
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Cooperatives and SMEs Minister Teten Masduki speaks to guests on Aug. 29, 2022 at the ministry in East Kuningan, South Jakarta. (Courtesy of Cooperatives and SMEs Ministry/-)
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ooperatives and Small and Medium Enterprises (SMEs) Minister Teten Masduki has questioned the plan of TikTok to expand into e-commerce and other sectors, saying the popular social media platform could become a "monopoly" and potentially threaten Indonesia’s small businesses.
Speaking at a meeting on Sept. 4 with House of Representatives Commission VI overseeing trade and investment, the minister said the video hosting service was currently applying for a license to operate a digital payment system.
After that, TikTok could also venture into "financing and logistics”, he said.
“I don't know why the Business Competition Supervisory Commission (KPPU) has not spoken about this," said Teten.
The cooperatives and SMEs minister underlined that a company should not be allowed to combine e-commerce and social media, pointing to the possibility of social media platforms influencing online transactions.
Teten also said that an e-commerce company should be prohibited from selling its own products in the online marketplace it operates.
"We should regulate that," he said, without indicating what types of rules should be put in place.
