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TikTok violates in-app transactions ban, says minister
TikTok had been forced to close its relatively new e-commerce service, TikTok Shop, in Indonesia after the country banned online shopping on social media platforms last year, citing the need to protect smaller merchants and users' data.
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Cooperatives and SMEs Minister Teten Masduki speaks to guests at the ministry office in Jakarta in this file photo taken on Aug. 29, 2022. (Courtesy of Cooperatives and SMEs Ministry/-)
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hort video app TikTok is still violating Indonesia's rule that bans in-app transactions, a cabinet minister said on Tuesday, after it took control of the country's biggest e-commerce platform to restart its online shopping business.
TikTok had been forced to close its relatively new e-commerce service, TikTok Shop, in Indonesia after the country banned online shopping on social media platforms last year, citing the need to protect smaller merchants and users' data.
Tech conglomerate GoTo said last month that TikTok, owned by China's ByteDance, had completed a deal agreed in December to buy 75.01 percent of Tokopedia for $840 million.
Teten Masduki, the minister for small-medium enterprises (SMEs), who spoke frequently against TikTok Shop prior to last year's ban, told reporters that TikTok still had not complied with the regulation.
"The trade minister has to reprimand TikTok so that it complies with the regulation, if not then ... the government's authority is undermined," he said.
A TikTok representative in Indonesia did not immediately respond to a Reuters request for comment.
The trade ministry said it was still considering how best to respond to the issue.
TikTok said last year it intended to invest billions of dollars in Southeast Asia, includingIndonesia, the region's biggest economy.
