TikTok Shop Returns; Trade Ministry Confirms No New Permit Issued Yet
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12 December 2023 16:44 WIB
TEMPO.CO, Jakarta - TikTok's e-commerce feature, TikTok Shop, returns and launches today, Dec. 12, following a strategic partnership with homegrown tech giant PT GoTo Gojek Tokopedia Tbk (IDX: GOTO).
However, the Trade Ministry confirmed that the Chinese video-sharing platform has not yet applied for a new permit for the business service. “There is no new permit yet,” the ministry's Director of Electronic Trade, Rifan Ardianto, told Tempo at Tokopedia Tower on Tuesday, Dec. 12.
TikTok Shop was discontinued on Oct. 4 after the government passed the Trade Minister’s Regulation (Permendag) No. 31/2023 which banned social commerce.
Isy Karim, the Trade Ministry’s Director of Domestic Trade, also said that TikTok has not yet applied for a new license, stressing that TikTok Shop cannot operate on social media. On this basis, the ministry would analyze and evaluate the service.
Referring to Permendag No. 31/2023, Isy also underlined that TikTok is only allowed to provide a promotional feature, while transactions should be made via e-commerce, which is Tokopedia.
Despite the regulation, Tempo observed that TikTok Shop is currently operating on TikTok, allowing users to have direct transactions without going to Tokopedia.
In response, Isy said the ministry would give TikTok time to conduct a trial run for three to four months, after which, the ministry would publish the evaluation result based on the Permendag 31/2023.
In his defense, Executive Director of TikTok Indonesia Stephanie Susilo said that the online shopping service was still in a trial period and that she would continue to coordinate with Tokopedia and the Trade Ministry.
In line with Stephanie, Tokopedia President Melissa Siska Juminto said that the joint service of Tokopedia and TikTok was still being tested with a focus on programs for micro, small, and medium enterprises (MSMEs). “This is a long journey and is still in the trial stage. We are working closely with the Trade Ministry,” she said.
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