Kominfo Minister: 'TikTok Already Has E-commerce Business License'
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21 September 2023 20:09 WIB
TEMPO.CO, Jakarta - Indonesian Minister of Communication and Information (Kominfo) Budi Arie Setiadi confirmed that TikTok already has a business license as a marketplace or e-commerce issued by the Trade Ministry. For this reason, he believed that the China-based social commerce did not violate the law and should not be terminated.
“I have asked TikTok and they said that they already have an e-commerce permit as of July, so nothing has been violated according to the applicable law,” Budi Arie said when met at the Smesco Convention Hall, South Jakarta, on Thursday, September 21, 2023.
However, Budi Arie said the government must first study this matter. He doubted that TikTok Shop was engaging in predatory pricing practices but rather using technological innovation by combining social media and e-commerce.
“Everything is blended now; e-commerce and social media. That’s technological progress,” Budi Arie argued.
Earlier reports suggested that Minister of Cooperatives and SMEs Teten Masduki believed that TikTok Shop has disrupted the domestic market. He also suspected the practice of predatory pricing as imported goods are sold at very low prices. Consequently, local MSME products become less competitive.
Teten assessed that foreigners enjoyed most of the revenue generated from online commerce, such as TikTok Shop, since most of the goods came from abroad. Logistics businesses also confirmed that foreigners took 70 percent of their revenues.
The Indonesian government, Teten stressed, needs to review the flow of goods sold through online platforms, including TikTok Shop. If merchants or digital platforms are found to be selling illegal goods, they may be subject to criminal law. They may also be found in violation of the customs law.
RIANI SANUSI PUTRI
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