Tiktok may restart Indonesia’s e-commerce business!

Tiktok may restart Indonesia’s e-commerce business!

At the end of September, Indonesian President Joko Widodo formally banned direct sales transactions on social media platforms "like TikTok" at a cabinet meeting, and said that the regulation would be included in the revised Indonesian Ministry of Trade Regulation No. 50/2020. Social media is prohibited from being used as a sales platform for goods and can only promote goods or services.
service
In addition, the new regulations also involve that imported goods sold in Indonesia need to comply with whitelist requirements, and e-commerce platforms cannot sell self-operated products, etc.

On October 4, TikTok’s Indonesian e-commerce business was shut down.
According to reports, TikTok plans to apply for an e-commerce license and is exploring the best way to do so. TikTok is in talks with local e-commerce companies, including GOTO's Tokopedia, on potential partnerships while developing a standalone TikTok Shop app for Indonesia.

In Indonesia, Alphabet’s YouTube may apply for an e-commerce license similar to the one Meta is applying for

Isi, director of domestic trade at the Indonesian Ministry of Trade, pointed out that Meta applied for an e-commerce license from the Indian government for its Facebook, Instagram and WhatsApp applications earlier this month to allow it to promote products on the platform and conduct market research. However, e-commerce transactions cannot be conducted directly.

In addition, YouTube is also planning to apply for an e-commerce license, but did not specify the type of license it plans to apply for.