ALBAWABA - The Indonesian Minister of Trade announced on Wednesday that the country has banned e-commerce transactions on social media platforms under new regulatory rules.
The government states that it has taken this action to protect traditional traders and the market in Southeast Asia's largest economy. It adds that competitive pricing on social media platforms threatens small and medium-sized companies.
Trade Minister Zulfikar Hasan told reporters that the regulatory rules, which went into effect immediately, aim to ensure "fair and equitable" trade competition. Earlier this month, Deputy Trade Minister Jerry Sambuaga stated, "Social media and e-commerce cannot be mixed," pledging to prevent any overlap between the two. He also described TikTok's live streaming feature as an example of individuals selling goods on social media.
As of Wednesday, there has been no response from the spokesperson for TikTok Indonesia to requests for comment. The spokesperson stated on Monday that the government should consider the "livelihood source of over six million" local sellers who conduct their businesses on the TikTok Shop commerce app.
The company reported that 325 million people in Southeast Asia use the app monthly, including 125 million from Indonesia.
