top of page
Lanon Wee

TikTok Closes in Indonesia After Ban on Social Media App

TikTok is ceasing its online shopping service in Indonesia in order to abide by regulations recently imposed in South East Asia's leading economy. This will begin at 5:00 PM Jakarta time (10:00 GMT). The government of the nation declares that the rules are established to assist in safeguarding local physical and digital merchants. Indonesia launched the first pilot program for the app's e-commerce service in 2021, and it became one of TikTok Shop's biggest markets. Last week, the Indonesian government issued regulations stipulating that TikTok must separate its shopping feature from the platform's video sharing operation within the country. At a press conference, Zulkifli Hasan, the Trade Minister of Indonesia, declared: "It is important to make a distinction between e-commerce and social media." He also informed social media platforms that they had seven days to abide by the new regulations or face possibly forfeiting their right to function in the nation. Following Indonesian President Joko Widodo's statement from last month, in which he said caution is necessary with respect to e-commerce given the potential for detriment if regulations are not in place, an announcement was made. TikTok declared in a statement on Tuesday that adhering to local laws and regulations is their topmost priority. Consequently, we will discontinue providing e-commerce services through TikTok Shop Indonesia. E-commerce in Indonesia has experienced vast growth in recent years. The Bank of Indonesia predicts that there will be a more than 600% growth in the online retailing sales value between 2018 and 2021, amounting to 689 trillion Indonesian rupiah ($44bn; £36.5bn). Since its launch two years ago, TikTok Shop has been increasing its share of Indonesia's online shopping market, which is largely held by platforms including Tokopedia, Shopee and Lazada. The population of more than 278 million citizens in this country is comprised of 125 million TikTok users, including 6 million sellers as well as an array of creators who monetize their goods through the app, TikTok Shop. In June, Shou Zi Chew, the company's CEO, traveled to Indonesia and committed to pouring billions of dollars into the area for the next three to five years. The emergence of online retailers has had a tremendous effect on people like Sukmamalingga, who has owned a shop selling Muslim garments like kaftans in Tanah Abang Market in Jakarta for the last nine years. He informed BBC News Indonesia that none of his customers from Indonesian areas were shopping anymore, despite him frequently sending photos of new styles of clothing. Government data indicate that 64 million micro, small, and medium sized firms exist in Indonesia, accounting for around two-thirds of the country's total economic output. TikTok has been met with heightened scrutiny in the US, European Union and the UK, and the regulations pose another hindrance for the app. In the UK, Parliament has even gone as far as preventing it from being accessed on their network due to security worries. Reporting supplemented by Quinawaty Pasaribu of BBC News Indonesia

Comments


bottom of page