Trade Ministry Denies Social Commerce Ban Backed By TikTok's Competitors

TEMPO.CO, Jakarta - Trade Ministry denied the allegation that the recently imposed social commerce ban was backed by competitors of TikTok, such as Shopee. According to Domestic Trade DG Isy Karim, Shopee is also affected by the revision of Trade Ministry Regulation No. 50 of 2020. 

As previously known, the government has issued Trade Ministry Regulation No. 31 of 2023 on electronic trading, covering various aspects including putting a US$100 limit on imported goods sold through a marketplace.

"So it's in no way backed by the likes of Shopee since the provision also affects them. This is not intended for a specific platform, but for all," he said on Friday, September 29, 2023.

Referring to the regulation, the government provided six main points concerning electronic trading: establishing a business model for electronic trading through the marketplace and social commerce and mandating a minimum price of US$100 for imported goods sold through cross-border e-commerce platforms.

The next points are providing a positive list of foreign goods allowed to be traded directly by merchants in the e-commerce platforms, establishing a special requirement for foreign sellers entering the Indonesian marketplace, banning social commerce and marketplace as producers, and strict data control by PPMSE (Trading Organizers Electronic System) to avoid misuses of data.

RIANI SANUSI PUTRI

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