Wednesday, 17 April 2024
Tech7 Facts about the Closed TikTok Shop

7 Facts about the Closed TikTok Shop


Jakarta

The steps taken by the Indonesian Government to establish Minister of Trade Regulation (Permendag) No. 31 of 2023 as a replacement for Minister of Trade Regulation No. 50 of 2020 create a platform TikTok Shop must close.

In this regulation, there is a prohibition on social media having a dual role as a trading platform. In these regulations, the function of social media is only allowed to be a platform for marketing goods and services.

The closure of the TikTok Shop is related to regulations regarding social commerce, where the TikTok Shop operates with a social commerce scheme. Social commerce is a scheme where a social media platform can be used to promote a product or service as well as a place for the buying and selling process to take place.

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This scheme is what made the government worried and closed TikTok Shop as a social commerce site. Through Minister of Trade Regulation No. 31 of 2023, the government wants promotional and sales activities to be on separate platforms.

Facts about the Closed TikTok Shop

Here are some facts about the TikTok Shop which was closed starting yesterday:

1. Not Totally Closed

The existence of Minister of Trade Regulation No. 31 of 2023 does not mean closing TikTok completely. According to information from the Minister of Trade, Zulkifli Hasan. TikTok Shop can still carry out promotional activities for goods and services.

The point that prohibits the issuance of this regulation is the prohibition on transaction activities at the TikTok Shop.

“In the future, social commerce will only be for promotion, like TV, there are advertisements,” explained Zulkifli Hasan at a press conference after the meeting about TikTok Shop last September 25.

2. Not Just TikTok Shop

Minister of Trade Regulation No. 31 of 2023 also does not only apply to TikTok Shop but also all social commerce which has the ability to promote as well as make transactions.

“We don’t use anyone’s brand, so far social commerce has not been regulated, now it is regulated,” added Zulkifli Hasan.

3. Closed from 4 October 2023

In response to the regulations issued by the Minister of Trade, TikTok sent a notification that the TikTok Shop would begin to close on Wednesday (04/10/2023).

This notification was sent by TikTok to all TikTok shop sellers.
“We will no longer facilitate e-commerce transaction services at TikTok Shop Indonesia starting October 4 2023 at 17.00 WIB,” wrote TikTok in the notification.

4. Reduce the Risk of Using Personal Data for Business Purposes

The Minister of Trade’s regulation also aims to reduce the risk of using personal data for business purposes. This was conveyed by the Minister of Communication and Information, Budi Arie Setiadi.

“If the algorithm is social media, e-commerce, fintech, then our data will be used arbitrarily,” he said.

5. Live TikTok Can Still Be Used

Because the closure of the TikTok Shop is not a total closure of TikTok as a social media, users can still use the live feature. This feature can be used to promote goods or services offered by sellers.

6. Basis for Closing the TikTok Shop

The closure of the TikTok Shop is based on Minister of Trade Regulation No. 31 of 2023, where in this case the ability of the TikTok Shop as a vehicle for transactions will be closed.

Under these regulations, TikTok Shop is included in the category of Electronic Trading Organizers (PPMSE). This is what caused the TikTok Shop to close.

7. TikTok Complies with the Rules

In connection with the publication of a notification from TikTok regarding the closure of the TikTok Shop, TikTok is committed to continuing to cooperate with the next government.

However, TikTok has not provided clarity about what the TikTok Shop service will look like after the Minister of Trade regulations are stipulated.

Watch Video “TikTok Shop Indonesia will be closed starting this afternoon at 17.00 WIB
[Gambas:Video 20detik]

(fyk/fyk)

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