Just like Olivia Rodrigo’s song “1 Step Forward and 3 Steps Back” but in this case it’s “3 Steps Forward and 1 Step Back”. The Indonesian government finally closed TikTok Shop on Wednesday, October 4th 2023. Did P-assengers know that there are few things that urge the urgency to block one of TikTok’s features, TikTok shop?
Hello P-assengers! How was your day? I hope for the best for our days! Entering this beautiful October, especially the 10.10 promo in almost all marketplaces except, TikTok shop. As is known, TikTok Indonesia has officially stopped buying and selling since Wednesday, October 4 at 17.00 WIB. People said the government issued the ban in an effort to protect traders in Tanah Abang Market, but actually, that’s not the main reason for the closure of TikTok shops. Several reasons why the TikTok shop closed have led to 3 steps forward and even 1 stepback of TikTok.
The closure of the tiktok shop was motivated by several reasons, one of the reasons was because the government wanted to protect local traders and products. President Joko ‘Jokowi’ Widodo also responded by convening an internal cabinet meeting to discuss electronic business regulation on September 25, following the meeting, on September 26, trade minister Hasan officially issued Regulation No. 31 of 2023 (Reg 31/2023). This regulation pertains to business licensing, advertising guidance, and supervision of electronic commerce operators in Indonesia. Based on the new regulations, TikTok has violated these regulations, because they interfere with social media activities and e-commerce transactions, because TikTok is only legally permitted to operate in Indonesia as a social media platform, not an e-commerce platform. Cooperatives and Small and Medium Enterprises Minister, Teten Masduki said there is also a monopoly allegation, it’s related to TikTok’s ambitious expansion especially through Project S, TikTok’s attempt to create an ecommerce platform that sells its own products from China’s industry. So, to prevent the business monopoly from TikTok, the government is trying to find the “win-win” solution for this, and so they decided to close one of TikTok’s helpful features, TikTok shop in the entry of October.
As is write, all of this reasons have led to 3 steps forward from TikTok, which means, by removing the TikTok shop feature on TikTok, they are indirectly complying with the regulation, they also supporting local product to grow up, and helping to fix up the market prices. Because the discounts that are given by TikTok are very big, they can indirectly harm the sellers and damage the market prices. But the closure of TikTok shop also brings 1 step back which inflicts a financial loss, because there are a lot of TikTok sellers that use TikTok shop as their platform to promote and sell their product. This was proven by a lot of sellers who complained and cried during the closing moments of TikTok Shop.
So, that’s the news and reasons behind the closure of the TikTok shop. Now, P-assengers know the reasons behind it, right? Which team are P-assengers on, pros or cons to this topic. Give us your thoughts!
Sources Reference:
- https://www.usnews.com/news/business/articles/2023-10-04/tiktok-shop-indonesia-stops-to-comply-with-the-countrys-ban-of-e-commerce-on-social-media-platforms
- https://dinsights.katadata.co.id/read/2023/09/11/monopoly-allegations-the-end-of-tiktok-shop-supremacy-in-indonesia
- https://en.tempo.co/read/1782537/indonesia-asks-philippines-for-help-evacuating-its-citizens-from-gaza?tracking_page_direct
- https://apnews.com/article/indonesia-tiktok-ecommerce-ban-china-62e5ef9f366d8cfd4a94427393bb5aba
- https://www.nytimes.com/2023/10/05/business/tiktok-shop-indonesia-ecommerce-ban.html
- https://kr-asia.com/reg-31-2023-the-regulation-behind-tiktok-shops-closure-in-indonesia
WOAH what an informative article!! Good job news online 🌟🤩
Very Informative and great choice of words!! Cheering you from afar Mbaras 🤩👏🏻