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Jakarta Post

Emboldened by TikTok victory, offline vendors take on e-commerce

Following the closure of TikTok’s e-commerce feature, traditional vendors are urging the government to close down other online platforms as well, arguing that such a move would revive quiet hallways at markets.

Yohana Belinda (The Jakarta Post)
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Jakarta
Sat, October 14, 2023

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Emboldened by TikTok victory, offline vendors take on e-commerce Quiet here today: Not many customers are seen at Jakarta's Tanah Abang Market on Oct. 10, 2023. Following the closure of TikTok Shop, textile merchants at the market have noticed no improvement in demand for their wares. The vendors now want the government to crack down on all e-commerce platforms. (JP/Yohana Belinda)

F

ollowing the closure of TikTok’s e-commerce feature, traditional retailers are urging the government to close down other online platforms as well, arguing that such a move would revive quiet hallways at malls and markets.

“The closure of TikTok Shop had no effect. The market situation now is similar to what it was prior to [the Trade Ministry’s recent regulation banning social commerce transactions]”, said Ali Hanafiah, a seller at Tanah Abang Market.

“Everyone has moved online. There's no longer a TikTok Shop, but Shopee is still there. If you want to close, then every platform must be closed. That’s when the economy revives,” the 48-year-old told The Jakarta Post on Tuesday.

Ali, a seasoned seller of Muslim clothing at Tanah Abang, says his store has been severely hit by the e-commerce boom, with the number of transactions down 90 percent since the advent of online retail.

The Padang man noted that the reduced footfall also affected kiosks in the area, as well as porters, who used to make at least Rp 300,000 per day around Tanah Abang, known as Southeast Asia's largest textile market.

Bayu, a 40-year-old trader at Tanah Abang Market, said shutting down other e-commerce sites would help the offline industry get back on its feet.

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“Due to [the commercial restrictions imposed to contain the] COVID-19 pandemic, people are still inclined to shop online, so they can shop at home while doing other activities,” Bayu said.

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