TikTok Shop Discontinuation Will Not Shut MSMEs Business, Minister Says Many Alternatives
Translator
Editor
5 October 2023 21:39 WIB
TEMPO.CO, Jakarta - TikTok Shop has been officially closed down on Wednesday, October 5, 2023. Minister of Cooperatives and SMEs Teten Masduki said that TikTok Shop's discontinuation will not shut down the businesses of MSMEs.
According to the minister, MSMEs can change to other e-commerce platforms that have the permit to trade through electronic systems (PMSE) in Indonesia.
"The sellers are traders in various channels. There’s no way they only sell in one channel. They must be selling in multi-channels. It’s common, they sell offline, online, and they sell in all markets," said Teten in an event dubbed Indonesia Digital Meet Up 2023 at the Smesco building, South Jakarta on Thursday, October 5.
He also asserted that TikTok’s shutdown does not mean that it will shut the businesses of MSMEs, saying that there are many other platforms that can be used to trade.
Despite the discontinuation of TikTok Shop, the app can still be used as a platform to promote the MSMEs products. "The marketing and promotion can also be done on TikTok," said Teten.
The minister stated that what is more important is to protect local productions, so domestic products can compete. "What must be protected is domestic production. Don't let it die. You can't compete because there are products that are sold very cheaply, and don't meet domestic standards," said Teten.
According to him, this could be detrimental to consumers and may lead to an increase in the number of unemployed.
Indonesia bans TikTok Shop or other social commerce to conduct commercial activities with the reason to protect MSMEs. TikTok stated that it will not facilitate e-commerce transactions on its TikTok Shop Indonesia platform. The China-based firm said that it will continue to coordinate with the Indonesian government regarding future steps and plans for TikTok Indonesia.
YOHANES MAHARSO | RIANI SANUSI PUTRI
Editor's Choice: No Sanctions for TikTok Shop, Communication Minister Says
Click here to get the latest news updates from Tempo on Google News
