This step is being taken to regulate the electronic commerce system, especially import and export, to protect domestic MSMEs from foreign products and also to help MSMEs reach wider market potential at the platform.
The Trade Ministry is conducting a three- to four-month trial for the TikTok Shop operation. The ministry will thereafter conduct a compliance audit to assess the platform's adherence to standard regulations and code of ethics set by the government. The audit will also review the effectiveness of the organization's internal controls.
Earlier, TikTok stopped operating the TikTok Shop in Indonesia on October 4 after they agreed to comply with government regulations regarding electronic commerce.
TikTok, as a social media platform, is only allowed to promote goods or services rather than conducting trade activity like other e-commerce.
This provision is in accordance with the revision of Minister of Trade Regulation Number 50 of 2020 concerning Provisions for Business Licensing, Advertising, Development, and Supervision of Business Actors in Trading Through Electronic Systems.
TikTok Shop should limit selling importedgoods: Minister
Minister of Communication and Informatics, Budi Arie Setiadi, when met in Jakarta on Wednesday, December 13, 2023. (ANTARA/Lia Wanadriani S/rst)
