Indonesia’s ban on Social media e-commerce hits TikTok and online sellers


Indonesia has imposed a ban on social media platforms from doubling as e-commerce sites in order to prevent misuse of data, Channel NewsAsia (CNA) reported. The announcement was made on September 25.
Trade Minister Zulkifli Hasan after a closed meeting on electronic commerce issues said, “(Social media can only (be used to) facilitate the promotion of goods or services (but) direct transactions … (and) direct payments are no longer allowed; (social media) can only be used for promotion.”
According to Channel NewsAsia, under the country’s Revised Ministry of Trade Regulation, a minimum import transaction of USD 100 will also be imposed on goods purchased from abroad. The ban has disappointed buyers, however, the sellers at physical stores in Indonesia have celebrated the move. Moreover, people in Indonesia expressed distress as they lost a cheaper shopping alternative.
Subairi, a factory worker from West java has relied on TikTok Shop for the past two months to buy his daily necessities. But, following the announcement, he is worried over the loss of cheaper alternative, reported Channel NewsAsia.