The SMEs minister has denied suggestions that the government planned to ban the highly popular social media platform, though he said if there was one, it would be designed to protect local SMEs against unfair competition.
ooperatives and Small and Medium Enterprises (SMEs) Minister Teten Masduki maintained on Thursday that the government had no plan to ban Chinese-owned TikTok, pointing out that he had no authority to make such a decision.
Teten said if the government intended to issue a new policy regarding the video hosting service, it would be designed to protect local SMEs that could be subjected to unfair competition from social commerce.
"I am not anti-foreign investment, especially in the digital economy. People say I plan to shut down TikTok, how is this possible? The authority to ban TikTok rests with the Communications and Information Ministry, the Trade Ministry and the Investment Ministry," Teten said on Thursday.
Earlier this month, the SMEs minister railed against TikTok's reported plan to expand to social commerce in the country at a meeting with House of Representatives Commission VI overseeing trade and investment.
He told legislators at the meeting on Sept. 4 that the social media platform should not be allowed to expand into e-commerce and other sectors, warning the TikTok could become a "monopoly".
Deputy Trade Minister Jerry Sambuaga also told a House meeting, "there should be differentiation between e-commerce, social media and social commerce", and called for changes to current trade laws, saying that the government had few policies regulating social commerce in Indonesia’s digital economy.
Indonesia is TikTok's second-largest market with 125 million users, according to data from the company, which is owned by Chinese technology giant ByteDance.
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