Trade Minister Gives a Week for TikTok Shop Closure

Jakarta – Indonesian Government through the Trade Minister Zulkifli Hasan gave a week to TikTok Shop applies for an electronic commerce permit before facing closure. 

This is in line with Trade Minister's Regulation Number 31 of 2023, that TikTok Shop must obtain an e-commerce permit if it wishes to continue doing transactions on the platform. 

"TikTok Shop will no longer be permitted to operate without an e-commerce permit," the Minister said on Wednesday. 

Later, TikTok can only be utilized for promotion and advertising, while actual transactions must be carried out on an e-commerce site,

Moreover, Minister 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.

"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," Miniter Hasan informed. 

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,” the Minister remarked.

Then, 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.