- Indonesia still finds fault with TikTok Shop, saying it violates regulations.
- Officials plan further discussions, with the Trade Minister.
- Indonesia may revise e-commerce rules to address concerns like predatory pricing.
E-commerce regulations in Indonesia
Despite resuming operations in Indonesia in December 2022, TikTok Shop continues to face scrutiny from regulators.
Indonesia’s Minister of Cooperatives and SMEs Teten Masduki says TikTok Shop still violates local regulations. This is because the platform enables direct transactions, even though it now partners with Tokopedia for payments.
In October 2022, TikTok Shop was temporarily shut down in Indonesia for violating e-commerce rules prohibiting social media platforms from direct sales. Last month, TikTok acquired a 75% stake in Tokopedia worth $2.2 billion.
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Indonesian officials seek resolution over TikTok Shop
The partnership allowed TikTok Shop to relaunch in Indonesia, with Tokopedia handling transactions.
However, users can still make purchases directly on TikTok Shop, the same process as before its closure. Minister Masduki says the investment in Tokopedia is not an issue, but TikTok Shop’s integration with social media still violates regulations.
Masduki plans to coordinate with Indonesia’s Trade Minister to discuss this matter further. The Trade Minister previously said he would audit TikTok Shop’s operations over 4 months. Masduki suggests revising e-commerce rules to address concerns like predatory pricing.
You can also read the original story in its entirety on https://www.techinasia.com/indonesian-minister-tiktok-shop-violates-regulations
