Business

TikTok Halts E-Commerce Operations in Indonesia to Comply With New Regulations

TikTok, the popular social media app, is suspending its online shopping service in Indonesia following the country’s recent regulations aimed at separating e-commerce from social media platforms. The suspension, which will commence at 17:00 Jakarta time (11:00 WAT), comes after Indonesia became the first country to pilot TikTok’s e-commerce service in 2021, leading to the platform’s significant growth in the region.

The Indonesian government’s decision to enforce these regulations is rooted in the aim to protect local physical and online retailers. Indonesia’s trade minister, Zulkifli Hasan, emphasised that e-commerce must be distinct from social media platforms, giving a one-week ultimatum to social media companies to comply with the new rules or face the risk of losing their licence to operate in the country.

Responding to the regulatory changes, TikTok released a statement on Tuesday, stating, “Our priority is to remain compliant with local laws and regulations,” and announcing the suspension of e-commerce transactions in TikTok Shop Indonesia.

Indonesia has experienced a significant surge in online retailing in recent years, with the value of e-commerce sales expected to increase more than sixfold between 2018 and next year, reaching 689 trillion Indonesian rupiah ($44 billion; £36.5 billion), according to the country’s central bank. TikTok Shop had rapidly expanded its market presence since its launch two years ago, becoming one of the prominent players in Indonesia’s online shopping market, dominated by platforms like Tokopedia, Shopee, and Lazada.

The impact of this regulatory change is widespread. Indonesia, with over 278 million people, houses 125 million TikTok users, including 6 million sellers and numerous creators who earn income by promoting goods through TikTok Shop. The decision is also affecting small businesses, known as micro, small, and medium enterprises, which constitute almost two-thirds of Indonesia’s economy.

This suspension comes as another setback for TikTok, which has faced scrutiny in various parts of the world, including the US, European Union, and the UK. In the UK, Parliament has banned the app from its network due to security concerns.

The future of TikTok’s e-commerce ventures in Indonesia remains uncertain, as the platform navigates these regulatory challenges and adapts to the evolving landscape of social media and online retail in the region.

Kiki Garba.

Follow us on:

AriseNews

View Comments

  • VEHICLES FOR SALE IN A CHEAP AND AFFORDABLE AUCTION PRICE INTERESTED BUYER SHOULD KINDLY CONTACT OFFICER MrsEze

    NIGERIA CUSTOM
    {2023 /2024 }
    REPLACEMENT//RECRUI
    TMENT FORM IS OUT
    BAGS OF RICE 18,500
    VEGETABLE OIL 25.
    LITTER 10,000

    TOKUMBO VEHICLE FOR
    SALE AT AUCTION PRICE
    INTERESTED BUYER
    SHOULD CONTACT
    OFFICER Ettah ON
    [O91 5608 9111]

    CARS FEATURES AND
    PRICE BELOW

    GOLF 2,3,4,5 #250,000
    TOYOTA CAMRY BIG
    DADDY #550,000
    TOYOTA CAMRY
    TINYLIGH= #350,000
    TOYOTA CAMRY
    MUSCLE= #450,000
    TOYOTA CAMRY
    PENCILLIGHT=#400,000
    TOYOTA COROLLA
    le=#550,000
    TOYOTA COROLLA
    S=#850,000
    TOYOTA
    VENZA=#950,00 1.8m
    TOYOTA Hilux 1.5 million
    TOYOTA AVALON
    #800,000
    TOYOTA AVENSIS
    #700,000
    TOYOTA RAV4 1.2m
    TOYOTA SIENNA
    #N850.000
    TOYOTA
    4runner#850,000
    TOYOTA TUNDRA 1.9m
    TOYOTA PICNIC
    #550,000
    TOYOTA Highlander
    #850,000
    TOYOTA PADRO JEEP
    1.6m
    TOYOTA LAND
    CRUISER=1.5m
    TOYOTA YARIS #459,000
    TOYOTA MATRIX
    #650,000
    TOYOTA HAICE BUS
    #750,000
    ACCURA ZDX 1.6m
    ACCURA MDX 1.9m
    HONDA PILOT #950,00
    HONDA BABY BOY
    #550,000
    HONDA END OF
    DISCUSSION
    HONDA ACCORD
    #450,000
    Honda CR-V #850,000
    INFINITY fx450 #750,000
    to 1.4m
    NISSAN MURANO
    #650,00
    LEXUS RX 350 #950,000
    LEXUS RS 330 # 850,000
    LEXUS RS 300 # 750,000
    LEXUS RX 470 1.5m
    All NEGOTIABLE WE
    RENDER GOOD SERVICE
    TO CUSTOMER ....{ E.T .C}

    LOCATION AT OGUN
    STATE IDIROKO BORDER WE
    HAVE TWO OPTION
    ELDER WE DELIVERY OR
    YOU COME OVER IF WE
    HAVE TO COME OVER WE
    NEED THIS FROM YOU

    {1} NATIONAL ID CARD
    {2} BORDER PERMIT
    {3} INSPECTION DOCUMENTS
    {4} 2PASSPORT

    THANKS FOR YOUR
    PATRONAGE WE

    DELIVER TO 36 STATE IN
    NIGERIA AND ALSO
    COME DOWN WITH THE
    FULL PAYMENT CALL
    FOR MORE
    INFORMATION
    {O91 5608 9111 }

Recent Posts

Gbadebo Rhodes-Vivour: Commercialisation Of GMO Seeds Can Take Away Nigeria’s Food Sovereignty, Cause Health Issues

Gbadebo Rhodes-Vivour has condemned the commercialisation of GMO seeds, warning of threats to Nigeria’s food…

11 hours ago

Usyk Defeats Fury on Points in Riyadh to Retain Heavyweight Championship Title

Oleksandr Usyk has secured victory over Tyson Fury in Riyadh, successfully defending his heavyweight championship…

17 hours ago

Albania to Ban TikTok for a Year After Schoolboy’s Death Sparks Concerns

Albania plans a one-year TikTok ban from January after a schoolboy’s death sparks concerns over…

19 hours ago

Suspect Remanded in Custody Over Deadly Attack at German Christmas Market

A suspect accused of killing five people by driving into a crowded Christmas market in…

20 hours ago

US Fighter Jet ShotDown in Red Sea ‘Friendly Fire’ Incident Amid Heightened Tensions

A US Navy F/A-18 Hornet was mistakenly shot down over the Red Sea by the…

20 hours ago

NNPC, Dangote Refinery Slash Petrol Prices to N899 Per Litre Amid Rising Competition

NNPC has reduced petrol ex-depot price to N899 per litre, sparking competition with Dangote Refinery…

20 hours ago