Significant Impact on Local SMEs, Government Emphasizes Ban on Tiktok Shop for Selling - Only for Promotion

Kapanlagi.com - Tiktok Shop recently gained the habit of shopping for users, especially Indonesian users. With easier access and numerous discounts offered, the shopping habits of the community, who used to prefer face-to-face or direct shopping at the market, have now shifted to Tiktok Shop.

Because of this, the cries of local SMEs, especially those managed by older generations who are not active on social media, are increasingly heard. Tiktok Shop truly changes the shopping habits of the community and has a negative long-term impact on Indonesian SMEs. In light of this, Minister of Trade (Mendag) Zulkifli Hassan ensures that the revision of Minister of Trade Regulation (Permendag) Number 50 of 2020 regarding electronic commerce will be signed on Monday (25/9/2023) afternoon.

1. Prohibition of Tiktok Shop Buying and Selling Goods

On Monday, September 25, 2023, the Minister of Trade held a meeting with President Joko Widodo at the Presidential Palace Complex to discuss regulations on electronic commerce, especially e-commerce. Zulkifli stated that the revision of trade regulations number 50 of 2020 will be revised.

In this regulation, e-commerce platforms like Tiktok Ship will be prohibited from conducting buying and selling transactions but only allowed to promote goods or services, similar to what other media platforms like radio and television do.

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"He (social commerce) is only allowed for promotion like television. TV can have advertisements, but TV cannot accept money. So it is a kind of digital platform. Its duty is to promote," explained Zulkifli.

2. Social Media Should Not Act as Producers

On the other hand, Zulkifli explained that social media should only act as a media platform, not as a product producer. This also supports the decision to revise the Minister of Trade regulation regarding foreign goods licensing or imports.

Zulkifli also emphasized the revision regarding Minister of Trade Regulation Number 50 concerning the sale of imported goods. He explained that both foreign and domestic goods sold in e-commerce must have the same standards. 

The same standard means that if the product is food, it must have a halal list. The same goes for beauty or skincare products, they must have POM permission. "So the treatment must be the same for both domestic and foreign products," said Zulkifli.

(kpl/nas)