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End of TikTok Shop transactions in Indonesia may hurt vendors: Experts
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Screened: A Jakarta resident watches a live stream of a seller showcasing her products on Sept. 26, 2023, on TikTok Shop. (Antara/Aditya Pradana Putra)
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hinese super app TikTok will no longer process transactions through TikTok Shop starting Wednesday afternoon, after widespread public accusations that the feature negatively impacts local businesses.
“Our priority is to remain compliant with local laws and regulations. As such, we will no longer facilitate e-commerce transactions in TikTok Shop Indonesia by 5 p.m. Oct. 4 and will continue to cooperate with the relevant authorities on the path forward,” a representative of the platform, owned by Beijing-based ByteDance, said in a statement issued on Tuesday.
Asked whether that meant that TikTok Shop would shut down altogether, TikTok Indonesia head of communications Anggini Setiawan told The Jakarta Post that the company would no longer offer “transactions” but did not elaborate.
According to experts, the restriction of the feature, which had grown quickly in popularity in Indonesia, could impact micro, small and medium enterprises (MSMEs) and business digitalization.
Trade Minister Zulkifli Hasan had previously informed media outlets that TikTok had one week to “close TikTok Shop” after the regulation was made public on Sept. 26, 2023.
"As of yesterday, it’s prohibited [to sell items on TikTok], but we’re giving one week [to inform the public]. Tomorrow, I'll send a warning letter,” he told reporters on Sept. 27, adding that social media with commercial aspects was outlawed and that social media could still market products but not sell them.
The move is based on Trade Ministry Regulation No. 31 of 2023, which, according to the government, levels the playing field for offline and online merchants.
