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Dream - The government through the Ministry of Trade (Kemendag) has agreed on regulations that separate social media and e-commerce. These regulations will be incorporated in the revision of Minister of Trade Regulation (Permendag) Number 50 of 2020 concerning electronic commerce.
"So there is a setting through the platform, earlier it was clear that the President's instruction was to separate social commerce from e-commerce and there are already many social commerce platforms that want to have transaction applications."
Minister of Cooperatives and SMEs, Teten Masduki, explained President Jokowi's instructions.
The government's move is also following the phenomenon of TikTok Shop, which is considered to erode local sellers, namely micro, small, and medium enterprises (MSMEs). The cheaper prices on TikTok Shop also worry offline stores and retailers. So, what is the price comparison between TikTok Shop and e-commerce?
"Price at TikTok Shop"
The price comparison can be seen from the example of the price of a portable mini fan with the same brand and specifications of the fan from TikTok Shop, an e-commerce platform operating in Indonesia. According to Merdeka.com, at TikTok Shop, the price of a portable fan with a power of 190 mAh and an embedded LED light is priced at Rp19,200. The price is considered cheap because it has received a 62 percent discount from the normal price of Rp50,000. Meanwhile, on Tokopedia, the same product is priced at Rp49,900 without any discount. When the product is accessed, it is stated that the item is already sold out.
The other comparison is, short-sleeved pajamas and shorts, imported brand Yooyi. In the TikTok shop, the pajamas are priced at Rp25,000. The price has been discounted by 72 percent from the normal price of Rp90,000.
While at Tokopedia, the same specifications pajamas are priced at Rp59,000 without any discount.
In addition to paying the price of the goods, consumers are also charged a fee of Rp1,000 for each transaction on Tokopedia. Different treatment is applied to buyers on TikTok shop who are not subject to additional charges on each transaction.
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