After shutting down its e-commerce operations on October 4, 2023, Tiktok Shop appears to be planning to resume operations within the near future. When they shut down their services, Tiktok stated in an official statement that it could proceed to speak with the Indonesian government to debate next steps.
TikTok has discontinued its e-commerce service following the issuance of recent regulations in the shape of Permendag No. 31 of 2023, which prohibits social media platforms from operating as e-commerce. However, it is feasible to resume operations of the Tiktok Store if it meets the necessities set out within the regulation.
For example, TikTok needs to maintain the transaction feature on its app. The regulation states that the so-called Social commerce platforms can only advertise goods. These details are included within the definition of social commerce and likewise explained in Art. 21 section 3, which prohibits platforms from conducting in-app transactions. Additionally, the Tiktok Store must also appoint a representative in Indonesia. This requirement is named the Representation of Foreign Trade Enterprises (KP3A), which is described in Art. 37 and 28 of the regulation.
Therefore, one possible option is for TikTok to launch a brand new app specifically for e-commerce. As such, there are strong signs that TikTok Shop will resume operations.
According to CNBC, TikTok Chief Executive Officer (CEO) Shou Zi Chew has proposed a plan to satisfy President Joko Widodo (Jokowi) within the near future, in line with Minister of Cooperatives and Small and Medium Enterprises (Menkop-UKM) Teten Masduki. Teten explained that the meeting will likely discuss a brand new marketing strategy to be implemented by TikTok in Indonesia.
He said Jokowi’s order was prompted by the impact of e-commerce on the SME sector, which is an element of his ministry. He emphasized that there is unquestionably a possibility of resuming TikTok Shop operations, as revenue from the service in Indonesia reaches over 8 trillion rupiah monthly.
The government also opened up opportunities for foreign corporations to enter the domestic market. However, Teten stressed that TikTok must comply with Indonesian regulations.
Meanwhile, a report presented by Bloomberg Technoz mentioned that MayBank also reported that TikTok Shop plans to resume operations in Indonesia after previously suspending trading services because of violation of the brand new Regulation on Trading through Electronic Systems (PMSE), which was amended and published in Indonesia a month ago.
However, it remains to be unclear when TikTok Shop will resume operations in Indonesia. Users can only be patient and wait until the service is obtainable again.
