Jakarta, October 4, 2023 – TikTok Shop, an e-commerce feature launched by TikTok in 2021, officially ceased operations in Indonesia on Wednesday (4/10). The cessation was made to comply with government regulations that prohibit electronic commerce (e-commerce) transactions on social media platforms.
In a statement, TikTok said that it respects the decision of the Indonesian government and will comply with applicable regulations. “Our priority is to remain compliant with local laws and regulations,” the company said.
TikTok Shop was launched in Indonesia in November 2021. The feature allows users to shop for products from various online stores directly from the TikTok app. In a short time, TikTok Shop became one of the most popular e-commerce features in Indonesia.
The Indonesian government issued a policy prohibiting e-commerce transactions on social media platforms in March 2023. The policy aims to protect consumers from fraud and misuse of personal data.
The cessation of TikTok Shop in Indonesia is expected to have an impact on e-commerce businesses that use the feature. However, the Indonesian government has promised to provide support to e-commerce businesses to switch to official e-commerce platforms.
Impact of the Cessation of TikTok Shop
The cessation of TikTok Shop in Indonesia is expected to have an impact on e-commerce businesses that use the feature. Some of the potential impacts include:
- Decrease in sales: E-commerce businesses that rely on TikTok Shop for their sales will experience a decrease in sales.
- Increase in marketing costs: E-commerce businesses will need to invest more in marketing on official e-commerce platforms.
- Dependence on official e-commerce platforms: E-commerce businesses will be more dependent on official e-commerce platforms for their sales.
The Indonesian government has promised to provide support to e-commerce businesses to switch to official e-commerce platforms. The support includes training and marketing assistance.
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You know what? after this event, so many offline seller wants to the goverment closing the marketplace like shopee, tokopedia, lazada, etc. I mean, many people won’t upgrade the capability selling to the other people, because, the technology will growing everyday. and we don’t leaves the fact…