Tiktok still violates new e-commerce law, says SMEs minister

The Minister of Cooperatives and Small and Medium Enterprises has stated that TikTok Shop is still violating the provisions of the new e-commerce law, and that the department has clearly coordinated technically between the ministries, but TikTok is still violating the provisions of the new e-commerce law. However, for the follow-up action, he is still waiting for coordination with the Minister of Trade. According to the law social media and e-commerce should be separated, and although TikTok invested in Tokopedia, TikTok still violated the law. The government has no problem with TikTok investing in Tokopedia, what is problematic is the fact that TikTok is still actually using the model of integrating the TikTok store with social media.

Meanwhile, the Chairman of the Business Competition Supervisory Commission (BCSC) said that the department will supervise and coordinate with the Ministry of Trade in order to maintain investments, partnership commitments and to protect micro, small and medium-sized enterprises. They want consistency and commitment from the companies involved, if focusing on social media, develop only on social media and do not get involved in the e-commerce sector, do not allow Tokopedia to abdicate its own obligations, there is no problem with investing in Tokopedia, but does TikTok really practice what it preaches when it comes to fulfilling its social media platform function.

Sources of information:Daily Indonesia