Why does Indonesia ban selling on social networks?

In recent weeks, Indonesian officials have called for a clear separation of social media and e-commerce.

At a press conference in the capital Jakarta on September 27, Trade Minister Zulkifli Hasan said: "This trade regulation has been effective since yesterday (September 26)."

Social media commerce platforms will have one week to comply with the new regulations, he said.

Under this regulation, businesses on social networks such as TikTok, Facebook or Instagram will not be able to transact directly but can only promote products.

Mr. Zulkifli Hasan said that this regulation is to ensure competition in business while protecting user data. In addition, Indonesia's trade minister also warned against allowing social networks to become e-commerce platforms, stores and banks at the same time.

The new regulation also requires e-commerce platforms in Indonesia to set a minimum price of $100 for certain items purchased directly from abroad.

AFP commented that this new regulation will add another obstacle for TikTok, which has faced close scrutiny in the US and other countries in recent months over the issue of user data security.

TikTok, owned by China's ByteDance, has chosen Indonesia, the world's fourth most populous country, as the first place to launch TikTok Shop from 2021.

With 125 million monthly users, Indonesia's TikTok user base is almost as large as Europe's and second only to the US, which has 150 million users. Earlier this month, TikTok launched an online shopping service in the US.

Responding to the ban, TikTok Indonesia expressed concern about the government 's decision, saying it would affect the livelihoods of 6 million local sellers using TikTok Shop.

Fahmi Ridho, a clothing seller on TikTok, said the platform was a way for stores to bounce back from the Covid-19 pandemic. “Sales don’t have to be through brick-and-mortar stores, you can do it online or anywhere…”, said Fahmi.

Meanwhile, Edri, who sells clothes at a large wholesale market in Jakarta, agreed with the regulation and stressed that limits should be placed on items sold online.

Minh Hoa (according to Lao Dong, Tuoi Tre, Nong Nghiep Viet Nam)

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