GoTo: TikTok Shop Transactional Process Already Trough Tokopedia
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8 March 2024 11:09 WIB
TEMPO.CO, Jakarta - Minister of Cooperatives and SMEs Teten Masduki accused TikTok of not complying with Indonesian regulations because it still conducts transactional activities through its social media platform.
Teten said TikTok has not made a clear separation between its social platform, TikTok, and its e-commerce platform, TikTok Shop. TikTok is not allowed to run an e-commerce business like other platforms because it is yet to have a valid license and legal entity.
"When it first appeared, TikTok did not comply with Indonesian law, they facilitated the sale of products, even though their license [in Indonesia] was only a representative office," said Teten in Jakarta on Thursday.
Unlike other social media platforms such as Instagram and Facebook, TikTok offers an integrated experience, allowing users to promote and sell directly on its platform, he said.
"There needs to be strict punishment for those who violate the Minister of Trade Regulation (MOTR) (No. 31 of 2023)," Teten said.
Minister of Trade Zulkifli Hasan said that the regulation aims to create a fair, healthy, and beneficial e-commerce ecosystem by taking into account dynamic technological developments.
The regulation also aims to support the empowerment of MSMEs and trade businesses through domestic electronic systems and improve consumer protection.
The MOTR explicitly prohibits social media from selling and making transactions directly on the applications. To comply with the law, TikTok Shop has partnered with GoTo’s Tokopedia, on December 12, 2023. This partnership involves, among other things, the merger of TikTok Shop and Tokopedia operations.
GoTo Group's Head of External Affairs Nila Marita said on February 28 that it has always tried to comply with MOTR 31/2023. The data migration process between TikTok and Tokopedia is almost complete and is targeted finish by the end of March 2024.
Nila emphasized that currently the shopping process, payment, and checkout transactions have been separated from the TikTok application and entered the Tokopedia back-end system.
ANTARA
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