TikTok-Tokopedia Migration under Strict Monitoring, Says Trade Ministry

TEMPO.CO, Jakarta - The migration process of TikTok and Tokopedia is still under close monitoring, said Director of Trade Through Electronic Systems at the Trade Ministry, Rifan Ardianto. The two tech companies have been granted a four-month deadline to complete the system integration from mid-December 2024.

“TikTok and Tokopedia have provided us with information on the progress of the electronic store system, and some things have been completed,” Rifan told Tempo on Friday, March 8, 2024.

According to him, the back-end migration that is entirely managed by Tokopedia, such as payments, transactions, and seller center, was expected to be finalized by March this year.

If this matter is not solved, the Trade Ministry will not hesitate to impose sanctions, “in accordance to Trade Minister’s Regulation No. 31 of 2023.”

Previously, Minister of Cooperatives and SMEs, Teten Masduki, accused TikTok of noncompliance with Indonesian regulations as it was still offering buying and selling services through its social media platform.

Teten found out that TikTok has not made a clear separation between its social media platform, TikTok, and its e-commerce platform, TikTok Shop. TikTok is not permitted to operate an e-commerce business because it lacks a valid license and legal entity.

“When it first started operations [here in Indonesia], TikTok did not comply with Indonesian law; it facilitated the sale of products when its permit was only for a representative office. According to the regulations, this should not have been done,” Teten underlined in Jakarta, on Thursday, March 7, 2024.

DESTY LUTHFIANI | ANTARA

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