No Sanctions for TikTok Shop, Communication Minister Says

TEMPO.CO, Jakarta - TikTok Shop has officially been closed down on Wednesday, October 4, 2023, at 05:00 p.m. WIB. The Communication and Informatics Minister Budie Arie Setiadi stated that TikTok Shop will not be sanctioned.

"TikTok has decided to no longer facilitate transactions in its TikTok Shop platform. In this case, sanction against TikTok is not needed," he said in a written statement received by Tempo on Thursday, October 5, 2023.

According to the minister, TikTok has abided by the law concerning electronic commerce by closing down TikTok Shop. However, the ministry will continue to evaluate the conformity of Electronic System Organizers like TikTok with the existing regulations. The ministry will routinely monitor the digital platforms that conduct e-commerce as part of its supervisory function.

Minister Budi also urged digital economy actors to "Utilize the existing marketplace [e-commerce] or other online transaction media by prioritizing the quality aspect and the transaction security."

Earlier, the government banned TikTok Shop and other e-commerce with the reasoning of MSMEs protection. The China-based company complied with the regulation and stated it would continue to coordinate with the Indonesian government to decide its future steps.

YOHANES MAHARSO | RIANI SANUSI PUTRI

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