28-9-2023 (JAKARTA) The Indonesian government has issued a seven-day ultimatum to TikTok Shop to apply for an electronic commerce permit, Trade Minister Zulkifli Hasan revealed on Wednesday. Failure to obtain the permit within the given timeframe will result in the closure of TikTok Shop, preventing it from conducting transactions on the platform.
During a press conference discussing Trade Minister’s Regulation Number 31 of 2023, Minister Hasan emphasized that TikTok would only be allowed for promotional and advertising purposes, while actual transactions must be carried out on an e-commerce site.
The minister urged all stakeholders to comply with the new regulations outlined in the revised Trade Minister’s Regulation Number 50 of 2020, which covers business licensing, advertising, development, and supervision of electronic system trading.
The revised regulation aims to foster a positive ecosystem for electronic trading and includes sanctions, such as permit revocation, for any violations.
Trade Minister’s Regulation Number 31 of 2023 addresses various aspects, including the separation between social media and social commerce. It also sets a minimum price of US$100 for imported finished goods sold directly by merchants to Indonesia through cross-border e-commerce platforms.
Furthermore, the regulation establishes a positive list of imported goods permitted to enter Indonesia directly via e-commerce platforms, according to Minister Hasan.
The regulation also imposes specific requirements on foreign traders in the domestic market. These requirements include providing proof of business legality from the country of origin, compliance with Indonesian national standards (SNI) and halal regulations, affixing Indonesian language labels on imported products, and specifying the origin of goods delivery.
Additionally, the regulation prohibits marketplaces and social commerce platforms from manufacturing goods and imposes restrictions on data control by the Trading Organizers Electronic System (PPMSE) and its affiliates.
The PPMSE’s responsibility is to ensure that user data is not misused by either the PPMSE or its affiliated companies.
