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Trade Minister Affirms TikTok Has No E-Commerce License

22 September 2023 20:39 WIB

TEMPO.CO, JakartaDirector General of Domestic Trade Isy Karim asserted that the short-video app TikTok does not yet possess a license to trade through electronic systems (PMSE). He said the Chinese social media platform only has an electronic system operator (PSE) permit issued by the Ministry of Communication and Information.

“TikTok Shop has a permit from the Trade Ministry as a representative office of the foreign trading company,” Isy said at his office, in Central Jakarta, on Friday, September 22, 2023.

However, he claimed that the license was actually issued by the Investment Ministry on behalf of the Trade Ministry. This caused a problem since TikTok operates as a social commerce, a combination of social media and e-commerce.

Therefore, the government would regulate social commerce through a revision of the Trade Minister’s Regulation Number 50 of 2020. “Let’s just wait until this regulation is published,” Isy remarked.

Isy added that President Joko Widodo or Jokowi had approved the social commerce policy, which is currently awaiting the signature of Trade Minister Zulkifli Hasan. He claimed that the regulation would be issued soon after being processed by the Ministry of Law and Human Rights.

Through this regulation, the government would separate social media entities from e-commerce and restrict cross-border sales of imported goods below US$100 per unit.

RIANI SANUSI PUTRI

Editor's Choice: Indonesia May Be Left Behind If Shutting Down Social Commerce, Says BKPN

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