JAKARTA, PROGRES.ID – Responding to the closure of TikTok Shop, the Minister of Cooperatives and Small and Medium Enterprises (Menkop and UKM) Teten Masduki revealed that several countries, including the European Union, the United States, and India, have tightened regulations and restrictions on new business models in the e-commerce industry.
On August 25, 2023, the European Union issued the Digital Service Act, which legally regulates content uploaded on the TikTok platform. This regulation also introduces measures to prevent and remove illegal content and enhance transparency regarding the platform’s algorithms.
“Recently, on August 25, 2023, the European Union issued the Digital Service Act, which legally regulates content uploaded on the TikTok platform,” said Teten Masduki in a press release received on Wednesday (October 4, 2023), as quoted from BeritaSatu.com.
In the United States, there was a proposal called the Restrict Act in March 2023, which allows for the national shutdown of TikTok if it is considered risky and potentially a threat to national security. In India, TikTok and 58 other Chinese apps were banned for geopolitical reasons.
Furthermore, several other countries, including Taiwan, Canada, Denmark, Australia, the United Kingdom, France, Estonia, New Zealand, Norway, and Belgium, have also imposed restrictions on TikTok, albeit to varying degrees. In China, TikTok operates under the name Douyin, but only local content is accessible, while products from outside China are tightly restricted.
Teten Masduki noted that China protects its domestic e-commerce platforms by restricting foreign investment and providing space for domestic platforms such as Alibaba, JD.Com, TikTok Shop (Douyin), Baidu, Tencent, Wechat, Youku Tudou, and Douyin.
China has also imposed various restrictions in the e-commerce sector, including transaction value limits, customs duties and import taxes, bans on selling below the cost of sales (COS), and strict rules related to import product certification.
Teten Masduki suggested that Indonesia could take inspiration from these measures in regulating digital transformation. Revisions to regulations that separate social media and e-commerce, as well as the implementation of various requirements for imported products, can help protect consumers and promote healthy competition in the digital market.
The separation of social media and e-commerce is considered essential to prevent the misuse of personal data for business purposes and avoid market monopolies. Regulation of algorithms and fair treatment of independent sellers are also important reasons for this separation.
Teten hopes that regulatory revisions like Minister of Trade Regulation Number 50 of 2020, which became Minister of Trade Regulation 31/2023, can enhance regulation in Indonesia’s e-commerce and social media sectors.