By Inside Retail Asia
Indonesia has banned e-commerce transactions on social media platforms, the trade minister said on Wednesday, in a move intended to protect traditional retail and which will mostly impact short video platform TikTok and its shopping platform.
The government says the move is aimed at protecting offline merchants and marketplaces in Southeast Asia’s biggest economy, adding that predatory pricing on social media platforms is threatening small and medium-sized enterprises.
Trade Minister Zulkifli Hasan told reporters the regulation, which takes effect immediately, is intended to ensure “fair and just” business competition, adding it was intended also to ensure data protection of users.
He warned of letting social media become an e-commerce platform, shop, and bank all at the same time.
The regulation also requires e-commerce platforms in Indonesia to set a minimum price of $100 for certain items that are directly purchased from abroad, according to the regulation document reviewed by Reuters, and that all products offered should meet local standards.
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