BBC Chinese recently reported that the Indonesian government last week required TikTok to separate its e-commerce functionality from its video sharing services. The measures took effect on October 4. Authorities said the ban was intended to protect local brick-and-mortar and online retailers.
Indonesian Trade Minister Zulkifli Hasan said E-commerce cannot become social media now; the two need to be separated. He added that if TikTok does not comply with the new regulations within one week, its operating license may be revoked.
In 2021, Indonesia became the first country to pilot e-commerce services for TikTok, and it is also one of the largest markets in the world for the TikTok Shop. TikTok responded in a statement saying its first priority is to comply with local laws and regulations. It will no longer conduct e-commerce transactions in Indonesia.
Indonesia is Southeast Asia’s largest economy, and the country’s online retail industry has boomed in recent years. Indonesia’s population exceeds 278 million, while TikTok’s users in Indonesia number 125 million. This figure includes 6 million seller accounts as well as millions of content creators who use the TikTok Shop to make money.
The rise of online retailers has hit brick-and-mortar stores hard in Indonesia.
Source: BBC Chinese, October 4, 2023