After the TikTok Shop refund issue in Indonesia escalates, it seems that there are rumors that there are other platforms which are applying for an e-commerce business license in Indonesia.
According to a Reuters report, TikTok and YouTube are being considered to affix Meta to use for an e-commerce license in Indonesia. This is in response to the Indonesian government’s ban on online shopping on social media platforms.
Indonesia, with a population of greater than 270 million, generated about $52 billion in e-commerce transactions last 12 months, in keeping with data from consulting firm Momentum Works. This is a serious blow to TikTok, which in June pledged to speculate billions of dollars in Southeast Asia, especially Indonesia with its 125 million users, to construct its e-commerce service TikTok Shop.
TikTok, owned by Chinese tech company Bytedance, is exploring options to use for an e-commerce license in Indonesia. TikTok can also be exploring potential collaborations with local e-commerce players, including Tokopedia, and plans to launch a standalone TikTok Shop app in Indonesia.
Meanwhile, YouTube has launched a shopping services initiative within the US to permit creators to advertise products and types on its platform. However, an organization spokesman declined to comment on the event.
Meanwhile, Meta Platforms, the owner of Facebook and Instagram, recently applied for an e-commerce license that can allow the promotion of products on its platforms, although direct e-commerce transactions won’t happen on them. Director General of Domestic Trade, Isy Karim, said the license would allow sellers to advertise and conduct market research, but wouldn’t cover e-commerce transactions on the app.
Isy also mentioned that Meta is bidding for similar app licenses on Facebook, WhatsApp and Instagram. However, it is necessary to notice that right now, YouTube and TikTok haven’t asked the federal government to use for similar licenses. Additionally, if TikTok decides to use for an e-commerce license, it is predicted to be a unit of a domestic company.
