TIME.CO, Jakarta – Director of the Institute for Economic and Social Research, Faculty of Economics and Business, University of Indonesia or LPEM user interface Chaikal Nuryakin believes that the closure of the TikTok store will create a healthy climate for online business.
According to Chaikal, when contacted by ANTARA in Jakarta, Wednesday evening, October 4, 2023, there is a healthy climate for online business, one of the reasons is because TikTok Shop merchants will also meet the same requirements as online merchants in e-commerce, how to pay taxes.
“I agree that TikTok is regulated (the closure of the TikTok Shop) to have the same conditions (conditions) as e-commerce. For example, taxes on MSMEs must be registered,” the economic observer said.
Chaikal explained that the existence of the TikTok Shop is an ongoing trend in the development of the digital economy. However, according to him, the large number of imported products sold at low prices on the TikTok Shop has made the technological upheaval have a negative impression. “So, the sense of importation causes an increasingly negative sense of disintegration,” Chaikal said.
Meanwhile, marketing and consumer habits expert Ignatius Untung Surapati appreciated TikTok’s compliance with Ministry of Commerce (Permendag) regulation number 31 of 2023 on business licensing, advertising, guidance and supervision of commercial actors in trade via electronic systems, in particular by closing the TikTok shop, an online buying and selling service.
According to him, this step has managed to stop the commotion related to the existence of MSMEs who were unable to compete with imported products on the TikTok Shop. “This compliance should be appreciated,” said the former general president of the Indonesian E-Commerce Association (idEA).
Announcement
TikTok closed the TikTok Shop on Wednesday at 17.00 WIB, in line with the ratification of Regulation number 31 of 2023 of the Minister of Trade relating to business licensing, advertising, guidance and supervision of commercial actors in trading through electronic systems.
In these rules, platform social commerce is prohibited from facilitating trade. Social commerce platforms can only promote goods and services, however they cannot open transaction facilities.
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