Indonesia bans e-commerce transactions on social media

Posted under: Digital Transformation
Date: 2023-09-28
Indonesia bans e-commerce transactions on social media

"Indonesia has banned e-commerce transactions via social media platforms, primarily affecting TikTok and its shopping platform. The government aims to safeguard traditional retail and protect small and medium-sized enterprises from predatory pricing on social media. Trade Minister Zulkifli Hasan emphasized that the regulation, which takes immediate effect, ensures fair competition and user data protection. It also mandates a minimum price of $100 for certain items directly purchased abroad and adherence to local standards. The recent ban on TikTok may have a significant impact on the popular social media platform, but it is unlikely to cause a major setback for the digital marketplace industry. Despite TikTok's huge user base in Indonesia, where it boasts 125 million monthly active users, there are concerns about how the ban will affect local sellers on the platform's e-commerce feature, TikTok Shop.

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