Teten Masduki in Serious Discussions with TikTok
Indonesia, a dynamic digital market, is once again in the spotlight of the digital world with exciting news: TikTok is reportedly gearing up for a comeback in the country’s e-commerce scene with TikTok Shop Plans Return. The Minister of Cooperatives and Small and Medium Enterprises, Teten Masduki, explicitly stated that several e-commerce companies in Indonesia are engaged in serious discussions with TikTok. This revelation emerged through an interview with Reuters on Monday (13/11), where Teten disclosed that he received this information directly from executives who had dialogues with representatives from TikTok.
Conversations between TikTok and five Indonesian e-commerce company, such as Tokopedia, Bukalapak, and Blibli, are currently underway. Although leaders from these three companies have not officially confirmed potential collaborations with TikTok Shop, the news has generated enthusiasm among TikTok users who have eagerly awaited the return of the platform to the country.
TikTok’s decision to shut down its services in Indonesia last month (4/10) at 5:00 PM WIB raised significant questions among its users. The closure occurred within a week of the issuance of Minister of Trade Regulation (Permendag) No. 31 of 2023 regarding Licensing, Advertising, Guidance, and Supervision of Business Actors in Trade Through Electronic Systems (PMSE).
Despite the closure of TikTok Shop, Minister Teten remains optimistic about TikTok Shop Plans Return in Indonesia. During the Pitching Day Startup event at the Ministry of Cooperatives and SMEs at the end of last month (25/10), Teten stated, “TikTok’s revenue is substantial, reaching IDR 8.4 trillion per month, a figure verified by Google. An enticing number indeed.”
TikTok Shop Plans Return with 3 Conditions
However, TikTok shop’s return is not without conditions. Regulations that TikTok must adhere to in order to reopen its services in Indonesia include:
- Establishing a Representative Office for Foreign Trade Companies (KP3A) in the PMSE field and making the e-commerce application a separate entity from the social media platform.
- TikTok is also prohibited from facilitating the sale of imported products above US$100 or approximately IDR 1.6 million.
- National standards, such as Halal Certification, Indonesian National Standards (SNI), and Distribution Permit Numbers, must also be a priority for TikTok.
The prospect of TikTok shop’s return to Indonesia is a major highlight as it can accelerate competition in the e-commerce landscape. TikTok users, who have been given a hiatus, will welcome the platform’s return with high enthusiasm, while businesses can leverage the growing digital market. Let’s hope that the discussions between TikTok and Indonesian e-commerce companies proceed smoothly and bring blessings to the country’s digital ecosystem. The journey of TikTok Shop Plans Return to the Indonesian stage will undoubtedly be an intriguing story to follow.