DIGIVESTASI - The news that TikTok would collaborate with domestic e-commerce so that it could resume operations in Indonesia finally reached the Minister of Cooperatives and SMEs (Menkop UKM), Teten Masduki. Minister Teten said from the Bloomberg report that TikTok will collaborate with PT GoTo Gojek Tokopedia Tbk (IDX: GOTO).

"That doesn't matter, because for example whether Tokopedia or Bukalapak, I don't know which one. Because both have IPO'd, they bought shares on the capital market, so the government doesn't need to interfere here because they are public companies," he said in JCC Jakarta, Tuesday (28/11).

Even so, Teten admitted that he had met with Tokopedia. He also emphasized that it is in the government's interest not to allow any more predatory pricing practices because that will hit UMKM. External digital platforms such as TikTok must also respect national economic development.

Including the government also wants the digital economy to start implementing sustainable business models.

"If we let money burn, this is not a sustainable business model. Therefore, it must be regulated. What needs to be regulated is a prohibition on predatory pricing, a prohibition on selling goods in e-commerce that are below COGS," said Teten.

He sees steps in China that are similar.

Because, if you directly burn money in e-commerce, it will hit e-commerce itself, there will be a monopoly of our digital market by one platform, by a very large force.

But on the other hand, it can also hit offline traders.

"We have to imitate China, there is already a regulation that no one can monopolize the market on digital platforms in e-commerce. 20-30 percent is normal, but if someone controls 70-80 percent of the market, that's an unsustainable business ," said Teten.

"If, for example, we look at business competition in e-commerce in fighting for or expanding market share in their business valuation, they burn money, free shipping costs, then the products are sold as cheaply as possible, even at predatory prices. Even on the global platform, there are products from abroad. "dumped, then subsidized domestically again by the platform," he continued.

Previously, Teten also warned that future TikTok services as social media must remain separate from e-commerce platforms.

"You have to have different platforms. You can't merge," he said.

That way, TikTok activities will not have an impact on domestic UMKM