TikTok ends retail business in Indonesia after ban on social media shopping

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Chinese-owned video platform TikTok says it will halt its online retail operation in Indonesia to comply with the country’s decision to ban e-commerce transactions on social media platforms.

A seller offers merchandise using live streaming at a store in the Tanah Abang textile market in Jakarta, Indonesia, Wednesday, Oct. 4, 2023. TikTok said it will halt its online-retail operation in Indonesia on Wednesday to comply with the country's decision to ban e-commerce transactions on social media platforms, a big blow to the video platform's fastest-growing market.

The Chinese-owned video sharing app said in a statement it will stop facilitating e-commerce sales in TikTok Shop Indonesia by 5 p.m. Wednesday. Indonesia’s Trade Minister Zulkifli Hasan said the ban aims to “prevent the domination of the algorithm and prevent the use of personal data in business interests" and"create a fair, healthy and beneficial electronic commerce ecosystem,” according to a statement released by the Trade Ministry when the ban was announced. It said marketplaces and sellers can only offer or promote goods and services.

He said TikTok was involved in predatory pricing that caused damages to local small- and medium-sized businesses, and that the new regulation “will justly regulate fair trade online and offline.”the government’s decision — particularly the impact it would have on the millions of sellers who use TikTok Shop. But the company said it will respect the regulations and “will take a constructive path forward.

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TikTok ends retail business in Indonesia after ban on social media shoppingSoutheast Asia is one of the Chinese company's biggest markets in terms of user numbers, generating more than 325 million visitors to the app every month.
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