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Exclusive TikTok Shop Indonesia shuts down, Impacting 6 Million Sellers

TikTok Shop Indonesia shuts down, Impacting 6 Million Sellers

TikTok Shop Indonesia shuts down, Impacting 6 Million Sellers

TikTok Shop Indonesia shuts down

To comply with new regulations in the largest economy in South East Asia, social media platform TikTok has suspended its online buying operation in Indonesia.

TikTok Shop Indonesia:The change will go into effect at 10:00 GMT/17:00 Jakarta time.

The nation’s government claims that the rules are intended to protect regional brick-and-mortar and internet stores.

One of the main markets for TikTok Shop Indonesia, which was the first nation to test the app’s e-commerce functionality in 2021.

Indonesia published legislation this week that would require TikTok to separate its commerce functionality from the widely used video sharing app there.

“Now, e-commerce cannot become social media,” Indonesia’s trade minister Zulkifli Hasan said when announcing the measures. It is divided.

He also gave social media companies a week to adhere to the new regulations or face losing their authorization to do business in the nation.

The declaration followed Joko Widodo, president of Indonesia, who stated last month: “We need to be careful with e-commerce. If there are restrictions, it can be very beneficial, but if there are none, it can be detrimental.

In a statement on Tuesday, TikTok stated that maintaining compliance with local laws and regulations was a top concern.

In light of this, it continued, “we will no longer support e-commerce transactions in TikTok Shop Indonesia.”

In recent years, online selling has greatly increased in Indonesia. According to the central bank of the nation, e-commerce sales would have climbed more than sixfold between 2018 and next year to reach 689 trillion Indonesian rupiah ($44 billion; £36.5 billion).

Since its debut two years ago, TikTok Shop has increased its market share in Indonesia’s online retail industry, which is dominated by sites like Tokopedia, Shopee, and Lazada.

There are 125 million TikTok users in the nation of more than 278 million people. This includes the 6 million vendors and the millions of additional producers who make money by promoting products on TikTok Shop.

Shou Zi Chew, the company’s chief executive, traveled to Indonesia in June and announced plans to invest billions of dollars there over the following three to five years.

Owners of physical stores, like Sukmamalingga, who has operated a shop selling Muslim clothes like kaftans in Tanah Abang Market in Jakarta for nine years, have been significantly impacted by the expansion of online retailers.

He told BBC News Indonesia that despite frequently sending pictures of new clothing models, none of his former customers from various parts of Indonesia any longer shop.

According to government statistics, there are approximately 64 million smaller companies, also referred to as micro, small, and medium firms, which make up about two thirds of Indonesia’s economy.

The new rules are just another setback for TikTok, which has been under fire in the US, the EU, and the UK, where Parliament has blocked the application from its network due to security concerns.

daftar tiktok shop indonesia

Berikut adalah daftar TikTok Shop Indonesia per 4 Oktober 2023:

TikTok Shop Indonesia merupakan platform e-commerce yang memungkinkan pengguna untuk berbelanja produk dari berbagai brand dan seller. Pengguna dapat menemukan produk yang mereka cari melalui fitur Discover, yang menampilkan produk-produk yang sedang tren atau direkomendasikan oleh komunitas TikTok.

TikTok Shop Indonesia memiliki beberapa keunggulan dibandingkan platform e-commerce lainnya, antara lain:

Pada tanggal 2 Oktober 2023, TikTok mengumumkan bahwa mereka akan menutup layanan TikTok Shop di Indonesia. Keputusan ini diambil setelah pemerintah Indonesia melarang TikTok untuk mengumpulkan data pribadi pengguna di Indonesia.

Penutupan TikTok Shop di Indonesia akan berdampak pada 6 juta seller yang menggunakan platform tersebut. Seller-seller tersebut harus mencari platform e-commerce lain untuk menjual produk mereka.

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