TikTok Shop should limit selling importedgoods: Minister

Jakarta (ANTARA) - Minister of Communication and Informatics, Budi Arie Setiadi, called on the e-commerce platform, TikTok Shop, which resumed its operation on December 12, to limit selling imported goods.

"As long as it complies with the laws and regulations, we support it. However, do not sell many imported goods, (as) the government will monitor it. It will be a loss for our micro, small, and medium enterprises (MSMEs)," he noted in an event on Wednesday.

Setiadi said his team would monitor and remind the platform to not sell many imported goods through the e-commerce platform that is currently partnering with PT GoTo Gojek Tokopedia Tbk (GoTo).

"This is not about illegal or legal imported goods. Our team will monitor it. This is a reminder for the platform. Any violation will be reported to the Trade Ministry," he emphasized.

The collaboration between TikTok and GoTo means that the shopping service feature in the TikTok application in Indonesia is now operated and managed by Tokopedia. 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.