PROGRES.ID – On October 4, 2023, at 5:00 PM Western Indonesia Time (WIB), TikTok Shop Indonesia officially ceased its e-commerce services. This closure was announced through TikTok’s official website.
TikTok, via the official TikTok.com page, conveyed that the decision to close TikTok Shop in Indonesia was made to respect and comply with the laws of the Republic of Indonesia.
“In carrying out our operations in Indonesia, our top priority is to respect and adhere to the regulations and laws applicable in this country. Therefore, with a heavy heart, we have to discontinue e-commerce transaction services on TikTok Shop Indonesia starting from October 4, 2023, at 5:00 PM WIB,” TikTok stated in its announcement.
TikTok also mentioned that they will continue to coordinate with the Indonesian government regarding the company’s future steps and plans.
One key point in this policy is the ban on social media platforms engaging in e-commerce businesses. This step is taken to prevent market monopolies and unhealthy competition within the industry.
The Minister of Trade of the Republic of Indonesia, Zulkifli Hasan, explained that these regulations are already in effect and must be followed by all parties. E-commerce platforms were given one week to comply with these rules.
One of the companies most affected by this policy is TikTok. TikTok had incorporated an online buying and selling feature, TikTok Shop, within its application, which had to be discontinued in accordance with the new rules imposed by the government.
Zulhas, his nickname, urged online merchants and customers to return to marketplaces to comply with the policy.