![Tok! TikTok Official Shop Closed Starting Wednesday, October 4, 2023 at 17.00 WIB.](https://cdns.klimg.com/mav-prod-resized/480x/ori/feedImage/2023/10/3/1696332766331-oy1ni.jpeg)
![Tok! TikTok Official Shop Closed Starting Wednesday, October 4, 2023 at 17.00 WIB.](https://cdns.klimg.com/mav-prod-resized/480x/ori/feedImage/2023/10/3/1696332766331-oy1ni.jpeg)
Dream - After experiencing quite a long debate, TikTok Indonesia has announced that it will close its TikTok Shop service in the country starting Wednesday, October 4, 2023, at 17.00 WIB.
This announcement is delivered directly by TikTok Indonesia on its official page on Tuesday, October 3, 2023. TikTok Indonesia reveals that its priority is to respect the regulations of the Indonesian government.
The text "dream.co.id" does not require translation as it is the domain name of a website.
With the announcement of the termination of TikTok Shop, TikTok Indonesia will no longer facilitate e-commerce transactions.
Additional TikTok Indonesia.
"Dream.co.id"
Regarding the future development plans, TikTok Indonesia will continue to coordinate with the Indonesian government. "We will continue to coordinate with the Indonesian government regarding our future steps and plans," expressed TikTok Indonesia, concluding its announcement.
The Indonesian Government has enacted Minister of Trade Regulation Number 31 of 2023 regarding Business Licensing, Advertising, Development, and Supervision of Business Actors in Electronic Trading (PMSE).
One of the new policies is to regulate the separation of business between social media and e-commerce or social commerce. Social media is only allowed as a means to provide offers for goods and/or services. "PPMSE with Social-Commerce business model is prohibited from facilitating payment transactions on its Electronic System," stated in Article 21 paragraph (3).
According to Liputan6.com, the Special Staff of the Minister of Cooperatives and Small and Medium Enterprises (MenKopUKM) in the Creative Economy Empowerment Field, Fiki Satari, explained about the danger of a platform running social media and e-commerce businesses simultaneously. There are at least four reasons, said Fiki, that make it prohibited for a platform to run such businesses simultaneously.
First, a platform can monopolize the market. Ironically, the monopoly of traffic flow is carried out without the users' awareness. They are directed to purchase certain products without them realizing it.
Secondly, platforms can manipulate algorithms. Platforms that have social media and e-commerce simultaneously can easily promote specific foreign products to continuously appear on users' social media while simultaneously making it difficult for local products to appear on social media.
Third, platforms can leverage traffic. Social media has a very large traffic and can currently be utilized as navigation or triggers in e-commerce purchases. These purchase triggers should not be captured by e-commerce platforms that are within the same platform as social media. If this happens, there will be no equal playing field in the digital industry in Indonesia.
Fourth, data protection. Referring to Law Number 27 of 2022 concerning Personal Data Protection, the processing of personal data is carried out according to its purpose. Since social media is intended for entertainment, the data obtained from it is not meant to be traded.
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