Despite Indonesia banning in-app transactions, TikTok has persistently violated the country’s prohibition on in-app transactions after the acquisition of the nation’s leading e-commerce platform an Indonesian cabinet minister has revealed
Indonesia’s cabinet minister for Small-Medium Enterprises revealed on Tuesday that TikTok has persistently violated the country’s prohibition on in-app transactions after the acquisition of the nation’s leading e-commerce platform to restart its online shopping venture.
TikTok’s foray into e-commerce, through its TikTok Shop service, was halted in Indonesia following the government’s prohibition on social media-based online shopping last year. The ban, aimed at safeguarding smaller merchants and users’ data, compelled TikTok to cease its e-commerce endeavours in the country.
In a strategic move, Chinese-owned ByteDance, the parent company of TikTok, recently concluded a deal to acquire 75.01% of Tokopedia, Indonesia’s prominent tech conglomerate GoTo revealed last month. The acquisition, valued at $840 million and finalized in December, was anticipated to pave the way for TikTok’s reentry into Indonesia’s e-commerce landscape.
Teten Masduki, Indonesia’s Minister for Small-Medium Enterprises (SMEs), highlighted concerns about TikTok’s compliance with regulations, highlighting the necessity for adherence to the ban on in-app transactions. Masduki emphasized the role of the trade minister in enforcing compliance, underscoring the potential repercussions for flouting governmental authority.
The Indonesian trade ministry is deliberating on the most appropriate course of action in response to TikTok’s alleged non-compliance with regulatory directives. TikTok had previously announced intentions to invest substantial sums in Southeast Asia, including Indonesia, signalling its commitment to the region’s burgeoning digital economy.
(With inputs from agencies)
