The Indonesian government is now planning to ban any activity of selling goods through social media under the new legislation. This latest partnership comes with the popularity of services such as TikTok Shop which is integrated directly on TikTok for buying and selling.
The Deputy Minister of Trade in Indonesia stated that social media and also trading activities cannot be combined in one application. In fact, existing legislation does not cover transactions that occur on social media.
According to the plan, the new legislation that will be presented will ban buying and selling activities on social media, and require it to be separated as a separate platform or application.
This move is expected to have a big impact on several platforms, especially TikTok. In Indonesia, there are 2 million TikTok Shops, and this new legislation is expected to have an impact on them. This implementation is also expected to have some impact on the global e-commerce landscape, and how the integration of buying and selling is done on social media.