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Chinese-owned TikTok to stop sales in Indonesia after social media transaction ban
- While stressing it would respect local laws, TikTok Indonesia also criticised the ban by saying it would harm millions of Indonesian sellers who used the app
- Firms who did not comply with the ban on goods transactions would first be warned and then lose their licence to operate in Indonesia
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Short video app TikTok will from Wednesday halt transactions on its platform in Indonesia following the country’s new ban on e-commerce trade on social media, it said on Tuesday.
“Our priority is to remain compliant with local laws and regulations. As such, we will no longer facilitate e-commerce transactions in TikTok Shop Indonesia,” the company said, adding that it will coordinate with the Indonesian government for its next steps.
TikTok, which is owned by China’s ByteDance said it will stop sales at 5pm Jakarta time on October 4.
The government has said the ban, imposed last week, is aimed at protecting offline merchants and marketplaces, adding that predatory pricing on social media platforms is threatening small and medium-sized enterprises.
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It was unclear from the statement whether TikTok will create a new e-commerce app, separate from its social media app.
TikTok’s decision is in line with the government’s grace period to comply with the new rule at one week, to avoid the threat of closure.
The new regulation is yet another setback for TikTok, which has faced intense scrutiny in the United States and other nations in recent months over users’ data security and the company’s alleged ties to Beijing.
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