TikTok Shop Will Return, Says SMEs Ministry

TEMPO.CO, Jakarta - The Indonesian Ministry of Cooperatives, Small and Medium Enterprises confirmed that TikTok Shop will be reopening and will comply with all applicable regulations.

"[TikTok Shop] will surely reopen. I’ve received information from TikTok that they will reopen and comply with regulations in Indonesia,” the ministry's Assistant Deputy for SMEs Temmy Satya Permana said in a media discussion on MSMEs at the Ministry Building, Jakarta, on Friday, November 17, 2023.

Permana claimed that the ministry has scheduled an agenda to meet with the CEO of TikTok on November 20, 2023. However, TikTok has not yet confirmed it.

He also heard the news that TikTok Shop would partner with an e-commerce company, which he could not disclose. “It's probably not feasible for it to create its own company,” he added.

Before it was closed down, Permana recalled that the Chinese super app had taken steps to adhere to the country's existing regulations. “But because of transitional change in the regulations, they were unable to fulfill the regulations within one week, especially in separating social commerce from social media.”

He emphasized the importance of adhering to the rules on social commerce, citing China's implementation of regulations banning a monopoly practice, in which Alibaba, the Chinese e-commerce leader, originally held 70% of the market but now only controls 30%.

“So if it's regulated in its country of origin, how can it operate freely in our country?” Permana added.

Previous reports suggested that TikTok CEO Shou Zi Chew made an appeal to meet with President Jokowi following the government's disabling of its commerce feature. However, Jokowi insisted that Shou Zi Chew should first discuss the future of TikTok Shop in Indonesia with Cooperatives and SMEs Minister Teten Masduki.

YOHANES MAHARSO | ANTARA

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