Luhut Binsar Pandjaitan Ensures Ongoing Support for SMEs

The recent ban on TikTok Shop has sparked various discussions and concerns regarding its impact on investments in Indonesia. However, the Indonesian Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, has provided assurance that the ban will not deter TikTok’s commitment to investing in the country. In fact, recently, he met with TikTok’s CEO, Shou Zi Chew, to discuss the future of TikTok’s investments in Indonesia.

During the meeting, one of the main topics discussed was the continuity of TikTok’s investment in Indonesia. “Yesterday, TikTok’s CEO met with me. They are fully supportive,” stated Luhut in Kuningan, South Jakarta, on September 28, 2023.

TikTok has long been known for its support of micro, small, and medium-sized enterprises (SMEs) in Indonesia. Therefore, the news of the TikTok Shop ban was met with disappointment, as millions of SMEs rely on their platform for marketing and sales.

In June 2023, TikTok made a substantial commitment to invest in Southeast Asia. According to their official statement, TikTok pledged to invest a significant amount, namely $12.2 million USD, in the region. This investment is part of TikTok’s “Local Support” program, aimed at empowering micro and small businesses, especially in rural areas, which are still unfamiliar with social media marketing. This program will collaborate with more than 25 government agencies and non-profit organizations across Southeast Asia, providing opportunities for businesses to reach new digital consumers through cash grants, digital skills training, and advertising credits.

This investment will benefit 120,000 SMEs in Southeast Asia. The $12.2 million USD investment consists of cash grants, digital skills training, and advertising credits for SMEs, including micro-businesses in rural and suburban areas.

Quoted from Ekonomi.Bisnis, in Indonesia, TikTok will also partner with the Ministry of Tourism and Creative Economy, the Central Association for Women’s Resource Development (PPSW), the Social Enterprise Platform (PLUS), and Telkom to launch TikTok Jalin Nusantara. This initiative will build internet connectivity in community centers in nine villages in East Nusa Tenggara and North Sumatra.

In addition to strengthening local digital infrastructure, TikTok Jalin Nusantara will provide training programs in these villages, as well as in five creative centers in key tourism and creative economic destinations and five Telkom IndigoHubs.

Previously, the Minister of Trade, Zulkifli Hasan, stated that TikTok would invest at least $10 billion USD in Indonesia. This was revealed during a meeting with the Minister of Trade on June 14. As per Luhut’s statement, if TikTok continues to invest in Indonesia, its focus will be on the development of SMEs and small to medium-sized enterprises.

Yustika Nindy Ferdiani