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IT Expert Responded to TikTok Shop-Tokopedia Collaboration

Translator

Najla Nur Fauziyah

Editor

Laila Afifa

18 December 2023 18:00 WIB

TEMPO.CO, Jakarta - IT Expert from the ICT Institute Heru Sutadi responded to the return of TikTok Shop in Indonesia after its team-up with Tokopedia. According to him, this collaboration made sense since Indonesia is in dire need of investments. 

However, he stressed that TikTok and Tokopedia must abide by the existing law, as provided under the Trade Minister Regulation No. 31 of 2023 on Business Licensing, Advertising, Development, and Supervision of Business Activities in Trading through Electronic Systems or e-commerce regulation.

"The regulation sets out to separate e-commerce from social media and must be followed, barring a change in the provision," he said when called on Sunday, Dec. 17.

Data accumulation was also a concern with social commerce, Heru said. "During the previous TikTok Shop ban, there was a concern of a potential user's social media and e-commerce data accumulation," he said.

According to the trade minister's regulation, the government banned e-commerce platforms and their affiliated companies to hold dominance over users' data. The trade ministry also obliged e-commerce to ensure no breach of user data within the platforms.

On the other hand, Heru stressed that no matter who controls the share between TikTok and Tokopedia must bolster MSMEs in Indonesia to advance the country's local products.

The Indonesian government has disallowed e-commerce to facilitate transactions of imported goods priced below US$100 per unit. The government has provided a positive list of goods allowed to be directly sold cross-border through e-commerce platforms. 

The Trade Minister regulation no. 31 of 2023 obliged foreign sellers in the marketplace to pass several requirements, such as submitting their business permit from their country of origin, satisfying Indonesia's national standardization and halal requirement, including a label with the Indonesian language for foreign-based products, and the origin of the products.

RR ARIYANI | RIANI SANUSI PUTRI

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