Indonesia’s Investment Minister, Bahlil Lahadalia, has firmly rejected the possibility of TikTok Shop, a social commerce app, making a comeback in the country. This decision comes in the wake of the discontinuation of e-commerce features on the social media platform due to government regulations that prohibit such platforms from engaging in online retail activities.
Speaking at the BNI Investor Daily Summit at Hutan Kota by Plataran, Bahlil stated, “That’s not allowed. TikTok is a social media platform, not an e-commerce platform.” The minister’s stance reaffirms the government’s commitment to maintaining a clear distinction between social media and e-commerce platforms.
Earlier reports had suggested that TikTok Shop might resume its operations on November 10, 2023, with TikTok’s CEO, Shou Zi Chew, reportedly seeking an audience with President Joko “Jokowi” Widodo.
While acknowledging the possibility of TikTok Shop reopening, Bahlil emphasized that any decision in this regard would need to meet the government’s established criteria. He also voiced his view that TikTok should primarily serve as a social media platform. “Let’s keep TikTok as a social media platform. We shouldn’t overly regulate and monopolize our nation,” Bahlil added.
The ban on TikTok Shop is part of the government’s efforts to strike a balance between online trading and offline market activities, ensuring local shops continue to thrive.