Investment Minister Asserts TikTok Must Follow Govt Rules
TEMPO.CO, Jakarta - Indonesian Investment Minister Bahlil Lahadalia claimed that he has not yet spoken to China-based short-video app TikTok about the government's decision to ban trading activities on social commerce platforms, such as TikTok Shop. He said the policy aims to protect local micro, small, and medium enterprises (MSMEs).
“Why should we talk to them? They have to follow the state [regulation],” Bahlil said at the Ministry of Investment's Office, on Monday, September 25, 2023.
He said the government is indifferent if TikTok objects to it. “Let it be, let it just go. That's okay. What's the matter? What will harm the country? It (TikTok Shop) is harmful to us,” he said.
Bahlil said that the government could potentially revoke TikTok’s license as it is registered as a social media platform but engages in business practices. “They have committed a violation for doing trading, haven’t they?”
Bahlil also said that the government is determined to improve the governance of this ecosystem. “The Trade Minister’s Regulation is being prepared,” he said.
Trade Minister Zulkifli Hasan announced after a closed-door meeting at the Jakarta Merdeka Palace, on Monday, September 25, that President Joko Widodo or Jokowi had officially banned social commerce, including TikTok Shop. He said this will be stipulated in the revision of the Trade Minister’s Regulation No. 50 of 2020 on Provisions on Business Licensing, Advertising, Guidance and Supervision of Businesses Trading through Electronic Systems.
He stressed that social commerce will only be allowed to facilitate goods and services promotion without direct transactions. It also requires a different platform for social media and economic activities. "[This is] to prevent domination of the algorithm and the use of personal data for business interests,” the Trade Minister said.
RIRI RAHAYU | DANIEL A. FAJRI
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