Jakarta (ANTARA) - The Trade Ministry's Regulation No. 31 of 2023, which led to the closure of TikTok Shop, will not hurt micro, small, and medium enterprises (MSMEs), Cooperatives and Small and Medium Enterprises (SMEs) Minister Teten Masduki said.
The regulation prohibits the operation of social commerce platforms, like TikTok Shop, which combine the features and functions of social media and e-commerce platforms.
"MSMEs will not die since they can use other channels apart from TikTok," he said after attending the Indonesia Digital MeetUP event in Jakarta on Thursday.
Minister Masduki clarified that the government's decision on TikTok Shop is not aimed at hindering MSME businesses. TikTok Shop has shut since it has not yet obtained a permit to operate as an e-commerce platform that supports trade activities, he added.
"It should be noted that the closure of TikTok Shop is a result of it not having a permit. The government does not seek to kill off the businesses in TikTok. All global business actors should abide by the government's rules to operate in Indonesia," he elaborated.
He then suggested that MSMEs that were previously conducting trade activities on TikTok Shop could simply switch to alternative online shopping platforms.
The minister also advised entrepreneurs to promote their products using conventional ways in addition to utilizing digital platforms.
"There are other channels for conducting trade activities. The buyers will not face difficulties in entering the channels," he said.
Masduki further explained that in order to continue its business in Indonesia, TikTok Shop will need to open a representative office in Indonesia, apply for a permit to operate as an e-commerce platform, and conform to the Trade Ministry's Regulation No. 31 of 2023.
"TikTok Shop was closed because it has not received a permit to conduct trade activities. TikTok Shop could continue its business in Indonesia if it established a representative office," he added.
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