TikTok Shop Still Violates the Law, Minister of Trade's Commitment Questioned

Jakarta, CNBC Indonesia – Minister of Cooperatives and Small and Medium Enterprises (Menkop UKM) Teten Masduki stated that TikTok Shop, which is now managed by Tokopedia, violated regulations because it did not separate social media and ecommerce.

TikTok Shop, according to him, still violates Minister of Trade Regulation (Permendag) no. 31 of 2023 concerning Business Licensing, Advertising, Guidance and Supervision of Business Actors in Trading Through Electronic Systems.

“We at the Ministry of Cooperatives have clearly carried out technical coordination between Ministries, and TikTok still violates Minister of Trade Regulation 31 of 2023,” said Teten when met at the Kemenkop UKM office, Jakarta, Monday (19/2/2024).

However, for the follow-up, said Teten, his party is still waiting for coordination with the Minister of Trade (Mendag) Zulkifli Hasan. “Yes, we will wait for the Minister of Trade,” he continued.

Teten stated that social media and ecommerce platforms must be separate. Bytedance's investment in Tokopedia, he continued, does not cover the fact that TikTok Shop is integrated into the TikTok social media application.

“[Seharusnya media sosial dan e-commerce] Separately, we have two things, right? TikTok is investing in Tokopedia, yes, but TikTok is still violating it, right? “We don't have a problem with TikTok investing in Tokopedia, we have a problem with TikTok, in practice it still uses TikTok shop, which is integrated with social media,” explained Teten.

Meanwhile, Chairman of the Business Competition Supervisory Commission (KPPU) M. Fanshurullah Asa said that his party would monitor and coordinate with the Ministry of Trade to maintain investment, partnership commitments, as well as safeguard Micro, Small and Medium Enterprises (MSMEs), so that in the future there would be no wrong steps.

“We will also hold an audience with the Ministry of Trade, to see how to maintain it,” said Fanshurullah on the same occasion.

He asked the government to be consistent with the regulations that had been made. Social media platforms may not offer ecommerce services within their applications.

“We want, as has been stated, to be consistent and committed that if he is on social media, he plays on social media, don't mess around on e-commerce, and don't let Tokopedia just drop his obligations, there's no problem with Tokopedia. “Right, but is TikTok really consistent in its behavior in carrying out its function as a social media platform,” he continued.

[Gambas:Video CNBC]

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