Minister visits Tanah Abang Market following social commerce ban

Minister visits Tanah Abang Market following social commerce ban

Trade Minister Zulkifli Hasan visits the Tanah Abang Market, Central Jakarta, following the issuance of Ministerial Regulation No.31 of 2023 that bans social commerce on social media platforms, on Thursday (September 28, 2023). (ANTARA/Farhan Arda Nugraha)

Jakarta (ANTARA) - Trade Minister Zulkifli Hasan visited the Tanah Abang Market, Central Jakarta, on Thursday following the enactment of Ministerial Regulation No.31 of 2023 banning transactions or social commerce on social media.

At the Blok A Building of Tanah Abang Market, the minister stopped at several shops.

"The government must be present, and we have regulated it. A social media platform must have a permit if it wants to become a social commerce (platform)," he remarked.

During his visit, the minister paid heed to complaints from several merchants who said that their income had plummeted due to being unable to compete with sellers on social commerce platforms, such as TikTok Shop.

Hasan remarked that the practice of predatory pricing on goods sold online had declined conventional merchants' sales.

The minister also cited Ministerial Regulation No.31 of 2023 while saying that social media should solely be used as promotional platforms and not to conduct trade activities.

"Transactions are not allowed on social media, like television, only for advertisement," he remarked.

Related news: TikTok Shop faces closure in Indonesia without e-commerce permit

The government has ratified Ministerial Regulation No.31 of 2023 concerning business licensing, advertising, development, and supervision of business actors engaged in electronic system trading.

The regulation stipulates that social media platforms should only facilitate the promotion of goods or services and are prohibited from allowing transactions.

It also sets a minimum price of US$100 for goods sold directly by foreign merchants to Indonesia via cross-border e-commerce platforms.

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

Meanwhile, merchants at Tanah Abang Market welcomed the government's decision to ban social commerce on social media platforms, such as TikTok Shop.

"I really agree with the ban. Since e-commerce and TikTok exist, I feel the impact. I also joined the digital platforms but lost to bigger merchants," he remarked.

Related news: Govt moves to level playing field for offline, online businesses

Related news: Indonesia bans social commerce on social media platforms

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