TEMPO.CO, Jakarta - Minister of Cooperatives and SMEs Teten Masduki said that TikTok still violates Indonesian regulations because it still conducts buying and selling activities through its social media platform, Antara news agency reported.

Teten said TikTok has yet to clearly distinguish between its social media platform, TikTok, and its e-commerce platform, TikTok Shop. Therefore, TikTok is not allowed to run an e-commerce business like other platforms because it does not have a legal license or legal entity.

"At the beginning of its appearance, TikTok did not comply with Indonesian law. They facilitated the sale of products, even though their license was only a representative office. According to regulations, this should not be done," Teten said in a statement confirmed by Antara in Jakarta, Thursday, March 7.

Unlike other social media platforms such as Instagram and Facebook that only serve as promotional platforms without a checkout feature, he said TikTok Shop offers an integrated experience, allowing users to promote and check out directly on its platform.

"There needs to be strict sanctions for those who violate the Minister of Trade Regulation (No. 31 of 2023) because the Permendag itself has been regulated regarding sanctions up to license revocation," Teten concluded.

Regulation of the Minister of Trade (MOT Regulation) Number 31 of 2023 regulates Business Licensing, Advertising, Development, and Supervision of Business Actors in Trading Through Electronic Systems. This regulation comes into force on the promulgation date, September 26, 2023.

Meanwhile, to comply with the provisions of the Minister of Trade, TikTok Shop, under TikTok, has partnered with Tokopedia, under GoTo Group, on December 12, 2023. This partnership involves, among other things, merging the operations of TikTok Shop and Tokopedia so that TikTok Shop will be integrated into the Tokopedia platform.

GoTo Group's Head of External Affairs Nila Marita said on February 28 that it always strives to comply with Permendag 31/2023. The data migration process between TikTok and Tokopedia is almost complete and is targeted to be completed by the end of March 2024.

Nila emphasized that the shopping, payment, and checkout processes have been separated from the TikTok application and entered the Tokopedia back-end system.

She also stated that she continues to coordinate with the government as the regulator to ensure that the two applications run following MOT Regulation 31/2023.

ANTARA

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