Ministry Bans TikTok Shop Transactions on Social Media Apps

Jakarta – The Indonesian trade minister, Zulkifli Hasan emphasized that he still bans Tiktok Shop from doing transactions or selling on their social media applications. 

However, Minister Hasan doesn’t  want to talk too far about the plan to merge Tiktok with Tokopedia through an acquisition scheme. 

Lately, news has circulated that Tiktok Shop will acquire 75 percent of Tokopedia shares, and become the controller of the e-commerce.  

"It's okay (to sell) but for the license itself. If the shop is directly (in one Tiktok application) it cannot," said Minister Hasan when met in the SCBD area, Jakarta, on Monday. 

The Minister of Trade stated that it has been rumored for two weeks that Tiktok will cooperate with Indonesian e-commerce, but the Minister Hasan has not received information or discussed with him. 

Only Promotion in Social Media Application

On the same occasion, Director of Trade Through Electronic Systems and Trade in Services of the Ministry of Trade, Rifan Ardianto said he agreed with Minister Hasan. 

In addition, Ardianto also reminded that if Tiktok wants to sell again through its application, then they cannot make transactions and are only limited to promotion.  

"By regulation, it is not allowed (social media applications transact) and refers to regulation of trade minister (Permendag) 31," he informed. 

As information, in Permendag 31, it's known that this regulation is the legal basis for prohibiting social media platforms from serving buying and selling transactions such as the Tiktok Shop service. 

The Permendag also clearly regulates that there is no separation relationship between social media that mimics social commerce or serves e-commerce in one application.