President Jokowi Says TikTok Shop Harms Conventional Markets and MSMEs
TEMPO.CO, Jakarta - President Joko Widodo (Jokowi) observed that social commerce platforms, such as TikTok Shop, had plummeted the production and sales of micro, small, and medium enterprises (MSMEs) and merchants in conventional markets.
The president opined that TikTok should have continued to function as a mere social media platform and not as an online shopping platform like e-commerce.
"This (social commerce) has affected the production of MSMEs and (conventional) markets. It (TikTok) is supposed to be a social media, not an economic media," he remarked after inspecting a road repair project in North Penajam Paser District, East Kalimantan, on Saturday, September 23, 2023.
President Jokowi stated that the government had prepared a regulation that aims to control trade activities conducted on social media platforms in order to control price competition and protect MSMEs and merchants in conventional markets.
The head of state explained that the regulation would govern business activities on social commerce platforms, which combine the functions and features of e-commerce and social media platforms.
According to President Jokowi, the regulation has already been formulated by several ministries, and the Ministry of Trade would soon approve it.
"The regulation is still in the hands of the Trade Ministry. Every other thing is complete. We just need to wait for the Trade Ministry to approve (the regulation)," he pointed out.
Earlier, Trade Ministry's Director General of Domestic Trade, Isy Karim, revealed that the detailed provisions concerning business activities on social media platforms would be incorporated into the revision of Trade Minister's Regulation No.50 of 2020 that governs trade activities on electronic systems.
The Trade Ministry has affirmed that it would not ban TikTok Shop, but it would regulate its activities to create a fair business climate for all parties.
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