Jakarta (ANTARA) - Cooperatives and Small and Medium Enterprises Minister (Kop UKM) Teten Masduki clarified that he had no authority to ban social commerce platforms, including TikTok Shop, considered harmful to domestic micro, small, and medium enterprises (MSMEs).

"Some people said I would close (ban) TikTok Shop, but the truth is that a minister of cooperatives cannot do that. Such an authority lies with the Communication and Informatics Ministry, Trade Ministry, and Investment Ministry," he remarked at the 2023 Digital MSME Summit in Jakarta on Thursday.

However, Masduki said he is committed to protecting domestic MSMEs from potential threats posed by social commerce platforms, such as TikTok Shop, which had been gaining popularity in Indonesia.

The minister reiterated that digital transformation is supposed to stimulate the emergence of new economic potentials that can elevate the living standards of people and create new job opportunities.

He then observed that the increasing popularity of e-commerce and social commerce platforms had resulted in a surge of influx of imported consumer goods, which, in turn, could disrupt the MSME ecosystem at home.

Moreover, numerous celebrities and "influencers" have begun promoting and selling such products through digital platforms, he pointed out.

Masduki then stressed that he, however, was never against foreign investments.

"I am not against foreign investments in the digital economy. In fact, we, the government, are consistently making improvements in permit services to provide convenience to business actors since we aim to make Indonesia the most attractive country for investments," he stated.

Furthermore, Minister Masduki also said that the government should regulate the flow of goods circulating on digital platforms in order to prevent the sale of illegal goods.

"We should supervise and regulate the flow of goods, so we can impose firm sanctions on those found selling illegal goods as well as the platforms that facilitate them," he emphasized.

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Translator: Maria C, Tegar Nurfitra
Editor: Azis Kurmala
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