TikTok granted e-commerce business licence in Indonesia

Social network TikTok has been granted an e-commerce business licence by the Indonesian Ministry of Trade, the country’s Minister of Communication and Information Budi Arie Setiadi said on September 21.

He expressed his hope that this social commerce platform will comply with laws of Indonesia and help boost the local economy.

Budi Arie noted he has asked TikTok, which replied that they already had an e-commerce permit as of July, so nothing has been violated according to the applicable law.

However, he said the government must first study this matter, and that TikTok is combining social media and e-commerce.

The minister added e-commerce and social media are being blended, and that is technological progress.

Meanwhile, Indonesian Minister of Cooperatives and Small and Medium Enterprises Teten Masduki held that TikTok Shop has disrupted the domestic market.

He also suspected the practice of predatory pricing as imported goods are sold at very low prices. Consequently, products of local micro, small and medium enterprises become less competitive./.

Source: Vietnam News Agency