TikTok E-commerce Endeavors in Indonesia
The popular short video app TikTok is currently undergoing the process of obtaining an e-commerce permit from the Indonesian government, according to a report by the state news agency Antara. The deputy trade minister, Jerry Sambuaga, mentioned that TikTok was previously non-compliant and lacked the necessary permit. However, efforts are now underway to rectify this situation.
Implications of Indonesia E-commerce Transaction Ban
In September, Indonesia imposed a ban on e-commerce transactions via social media platforms, dealing a significant blow to TikTok. This move came at a crucial time as TikTok had committed to investing substantial amounts in Southeast Asia, particularly in Indonesia, the largest economy in the region.
Deputy Minister Sambuaga indicated that TikTok is now addressing its compliance issues and working towards obtaining the required permit. He also mentioned the possibility of TikTok forming a partnership with a local company, provided it aligns with regulations.
TikTok, owned by China’s ByteDance, boasts 125 million active monthly users in Indonesia, a country with a population exceeding 270 million. The platform aims to leverage this large user base to establish itself as a significant source of e-commerce revenue.
TikTok Response and Ongoing Negotiations
In response to the deputy minister’s statements, TikTok has not yet provided a comment. Earlier reports revealed ongoing discussions between TikTok and various Indonesian e-commerce companies, including potential partnerships with GoTo’s Tokopedia, Bukalapak.com, and Blibli.
Read More (Innovation)
