Later, TikTok can only be used for promotion and advertising while the transaction must be carried out at the e-commerce.
Jakarta (ANTARA) - TikTok Shop has been given up to a seven-day ultimatum to apply for an electronic commerce permit before facing closure by the Indonesian government, Trade Minister Zulkifli Hasan said on Wednesday.

Speaking during a press conference about the dissemination of Trade Minister's Regulation Number 31 of 2023, he stated that TikTok Shop must obtain an e-commerce permit if it wishes to continue conducting transactions on the platform.

Once the one-week period elapses, TikTok Shop will no longer be permitted to operate without an e-commerce permit, he added.

"In the future, TikTok can only be utilized for promotion and advertising, while actual transactions must be carried out on an e-commerce site," he emphasized.

Hasan urged all stakeholders to adhere to the new rules outlined in the regulation, which amends Trade Minister's Regulation Number 50 of 2020 pertaining to business licensing, advertising, development, and supervision of business actors engaged in electronic system trading.

He said that the revision aims to foster a positive electronic trading ecosystem. The ministry will also impose sanctions, including permit revocation, for any violation of the regulation.

Trade Minister's Regulation Number 31 of 2023 covers various aspects, including the separation between social media and social commerce.

Additionally, it mandates a minimum price of US$100 for imported finished goods sold directly by merchants to Indonesia through cross-border e-commerce platforms.

The regulation also includes a positive list of imported goods permitted to enter Indonesia directly via e-commerce platforms, Hasan said.

The regulation also establishes specific requirements for foreign traders in domestic markets.

These include providing proof of business legality from the country of origin, compliance with Indonesian national standards (SNI) and halal regulations, affixing Indonesian language labels on products originating from abroad, and specifying the origin of goods delivery.

The regulation also prohibits marketplaces and social commerce platforms from manufacturing goods and restricts data control by the Trading Organizers Electronic System (PPMSE) and its affiliates.

PPMSE's duty is to safeguard against the misuse of user data by either PPMSE or its affiliated companies.

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Translator: Maria Cicilia G P, Resinta S
Editor: Anton Santoso
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