Minister Reminds TikTok, GoTo to Obey Rules and Protect Local SME

TEMPO.CO, Jakarta - The Ministry of Cooperatives and SMEs appealed to TikTok to comply with regulations and prioritize MSMEs in Indonesia after agreeing on a strategic partnership with PT GoTo Gojek Tokopedia Tbk (IDX: GOTO).

Minister Teten Masduki reminded TikTok and GoTo to comply with existing regulations in Indonesia, especially Trade Minister's Regulation no.31/2023 on business licensing, advertising, coaching and supervision of business actors in trading via electronic systems (PMSE).

"TikTok and GoTo must participate in developing government programs, empowering MSMEs and building sustainable business models," Teten said in an official statement on Dec. 11.

Some of the provisions in the Trade Minister's Regulation include the separation of e-commerce from social media as well as a prohibition on providing space for dumping goods in their country of origin, or imported goods at lower export prices than their country of origin.

The minister emphasized that merchants selling imported goods must have import documents, so as not to sell illegal goods. He asked TikTok and GoTo not to sell imported goods with incomplete documents.

Imported goods sold online, he said, must have a distribution permit from BPOM, have SNI, and have halal certification, in order to protect consumers in Indonesia.

Teten also asked TikTok and GoTo not to sell goods whose prices are below the domestic cost of goods sold (HPP). The purpose is to protect local MSMEs that produce goods. The government also prohibits online platforms--including TikTok and GoTo--from selling their own products, to avoid discrimination against local brands or products sold on their platforms.

TEMPO.CO

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