TikTok Teams Up with Local E-commerce to Revive TikTok Shop in Indonesia

Berita Terkini - Posted on 20 November 2023 Reading time 5 minutes

There are reports that TikTok plans to collaborate with local e-commerce to resume the operations of its TikTok Shop in Indonesia. "Assistant Deputy for Financing and Investment in SMEs, Deputy for SMEs at the Ministry of Cooperatives and Small and Medium Enterprises (Kemenkop UKM) Temmy Satya Permana stated, 'There will be leaks later. I've heard several versions, but I'm not brave enough to say. But it's likely that it will join forces with local e-commerce because creating its own PT (limited liability company) seems unlikely," as conveyed during the Advanced MSME Media Discussion Towards Indonesia Emas, quoted by Antara on Sunday, November 19, 2023.

 

Although unwilling to confirm the rumor that the local e-commerce to be partnered with is Tokopedia, Temmy ensures that TikTok's partnership with one local e-commerce will not disadvantage other local e-commerce as people have diverse preferences.

 

According to Temmy, the government cannot regulate or prohibit TikTok from partnering with local e-commerce as long as TikTok complies with the applicable regulations in Indonesia. He stated, "No problem, as long as everyone follows the rules. There's no problem. It's just how the public evaluates which one offers better services. We can't prohibit TikTok from partnering with anyone as long as they comply with the regulations."

 

Furthermore, Temmy explained that the ban on TikTok Shop operations was due to non-compliance with regulations, as the permit as a social media platform was also used as an e-commerce, creating a gap.

 

He emphasized that TikTok only holds a permit from the Representative Office of Foreign Trading Companies or KP3A, which is not allowed to sell, only to serve consumer complaints and conduct market research. Temmy also highlighted regulations in China, where monopoly platforms are prohibited, comparing it to the situation in Indonesia, stating, "So even in its home country, it's regulated. How can we be free here? No way."

 

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Source: medcom.id

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