TikTok ends retail business in Indonesia after ban on social media shopping
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 Indonesian government announced the new regulation, which prohibits social media companies from facilitating sales of products on their platforms, on Sept 28 in a bid to protect small businesses from e-commerce competition, accusing the popular apps and websites of predatory pricing.
The Chinese-owned video sharing app said in a statement it will stop facilitating e-commerce sales in TikTok Shop Indonesia by 5 pm Wednesday.
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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.
A week before the ban was announced, Southeast Asia's largest wholesale market, Tanah Abang, came under inspection. Sellers at the market in the capital, Jakarta, were experiencing a more than 50%
