Minister Teten Rejects TikTok Being Used for Selling, Here's the Reasons

"Minister Teten Rejects TikTok Being Used for Selling, Here are the Reasons"

Minister Teten Rejects TikTok Being Used for Selling, Here's the Reasons

Dream - Minister of Cooperatives and Small and Medium Enterprises (MenKopUKM), Teten Masduki rejects the TikTok platform business model that operates social media and social commerce businesses simultaneously in Indonesia. Similar bans have also been imposed by the United States and India.

"India and the United States dare to reject and ban TikTok from operating social media and e-commerce businesses simultaneously. Meanwhile, in Indonesia, TikTok can operate both businesses simultaneously."

The following is the translation of the given 'Bahasa' text to 'English' while preserving the HTML tags: "word Teten Masduki, quoted from Merdeka.com, Thursday, September 7, 2023."

"Prevent Monopoly Practices"

Teten explained that the rejection was done because the working model carried out by TikTok tends to be monopolistic and will harm the sustainability of local SMEs. Although refusing to be used as a trading platform, the government still allows TikTok to operate as a social media. Meanwhile, becoming an e-commerce platform cannot be run simultaneously with social media.

"From research, from our survey we know that online shopping is navigated, influenced by discussions on social media. Not to mention the payment system, they control all the logistics. This is called a monopoly,"

say Minister Teten.

"Local Traders' Sales Plummet"

"Previously, Member of Commission VI of the Indonesian House of Representatives, Mufti Anam, mentioned that the turnover of traders in Tanah Abang Market, Central Jakarta, has drastically decreased from Rp40 million per day to Rp9 million. According to Mufti, one of the factors contributing to the decline in physical market activity is the presence of e-commerce and social commerce, such as the Tiktok application."

"If we look at today, (for example) Tanah Abang, ITC, Roxy, and so on are empty, Sir. Yesterday we went to Tanah Abang to check what was reported and it turned out to be true, Sir. Their usual daily income of Rp40 million is now only Rp9 million per day, very tragic."

Mufti expressed when holding a meeting with the Minister of Trade, Zulkifli Hasan on Monday (September 4, 2023).

Mufti mentioned that the presence of social commerce currently allows Indonesian SME products to be mass-produced in China through the utilization of artificial intelligence (AI). "So, they have some kind of AI (Artificial Intelligence) and then they send people to check the production site, and within less than a week, the launched goods are already produced in China and already available in our country, Sir," expressed Mufti.

"Cross Boarder e-Commerce"

Apart from regulating policies for TikTok, Minister Teten emphasizes the need to regulate the separation of social media and e-commerce businesses. His own party will regulate cross-border commerce so that domestic SMEs can compete in the Indonesian digital market. What the minister means, for example, is that foreign retailers are no longer allowed to sell their products directly to consumers. They must first go through the regular import mechanism before they are allowed to sell their goods in the Indonesian digital market.

"If they sell their products directly to consumers, Indonesian SMEs will definitely not be able to compete because our SMEs have to take care of distribution permits, national standards, halal certification, and so on."

Minister Teten said.

"Import Product Activities"

The government will also prohibit digital platforms from selling their own products or products originating from their affiliates. This way, digital platform owners will not manipulate their algorithms to present fair business practices. Minister Teten also said that the government should also ban import activities for products that can already be produced domestically.

"Imported Goods Price"

Teten added, the government also needs to regulate the prices of goods that can be imported into Indonesia. According to him, only goods with prices above US$100 will be allowed to enter Indonesia. "The government also needs to prohibit goods that have not been produced domestically even if their prices are below 100 US dollars. The goal is to enable these goods to be produced by domestic SMEs," said Minister Teten.

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