The Indonesian government today announced the banning of any e-commerce transactions on social media platforms. This matter was officially announced by the Ministry of Trade in Indonesia today.
With this move, the Indonesian government says it will better protect the retail and business arena in the country, and not be affected by various other platforms such as TikTok Shop and so on.
This move is expected to have a big impact on TikTok, which integrates buying and selling support on its social app. On the other hand, other applications simply focus on e-commerce, or social services only.
In addition to this ban, the Indonesian government also stated that e-commerce platforms need to set a minimum price of around RM470 for the sale of goods purchased directly from outside Indonesia.
This change will certainly be welcomed by traders and sellers in Indonesia - while avoiding them, especially small traders affected by the "price war" on the platform. On the other hand, this may have a big impact on TikTok which has started to focus on e-commerce recently.