RI's Social Commerce Ban: Dead End or Minor Challenge for TikTok?

By Editorial Team 26/09/2023
Tiktok
Summary

The government has decided to ban social media platforms from facilitating online sales. This prohibition will be included in the revised Trade Minister Regulation No. 50/2020 on Provisions for Business Licensing, Advertising, Guidance, and Supervision of Businesses in Trade through Electronic Systems. Trade Minister Zulkifli Hasan said that social commerce can only be used for promoting goods or services, not for direct transactions.

Zulkifli said that the government wants to separate the roles of social media and the economy. “We don’t want them to control the algorithm. This is to prevent the misuse of personal data for business purposes,” he said on Sept 25.

Zulkifli said he was ready to sign the new regulations soon. Cooperatives and Small and Medium Enterprises Minister Teten Masduki said that the government aims to regulate fair trade between e-commerce and conventional businesses. “But online businesses are still free to operate. The key is to revise the Trade Minister Regulation,” he said.

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