Indonesia To Regulate Social Media Sales Soon: Leader
Ijaz Ahmad Published September 25, 2023 | 08:30 PM
Indonesian President Joko Widodo said new regulation on social media commerce could be passed as soon as Tuesday, as Jakarta aims to rein in sales on tech platforms it says are harming local businesses
Jakarta, (UrduPoint/APP - UrduPoint / Pakistan Point News-Sept 25th, 2023) :Indonesian President Joko Widodo said new regulation on social media commerce could be passed as soon as Tuesday, as Jakarta aims to rein in sales on tech platforms it says are harming local businesses.
Indonesian users spent more money on TikTok than anywhere else in Southeast Asia over the past year, as the app's e-commerce arm rapidly grew to gain a substantial regional market share and millions of sellers since its 2021 launch.
Laws in the archipelago nation do not cover sales through social media platforms such as TikTok, Facebook, or Instagram, but officials in recent weeks have called for social media and e-commerce to be decoupled, taking aim at platforms they say engage in monopolistic practices.
"We just decided in a meeting about social media which are being used as e-commerce.
Tomorrow it will perhaps come out," Widodo said Monday in a video address, without naming any companies.
"The big umbrella of regulations about digital transformation should be made more holistic, and it is being done by the government.
So that technological developments... can create new economies, not kill existing economies."
The ministerial-level regulation -- an amendment to a trade regulation issued in 2020 -- will not need approval by lawmakers.
In Indonesia, most regulations can be issued by the government unilaterally, while a law requires parliamentary approval.
Trade Minister Zulkifli Hasan told reporters after the meeting with Widodo that he would sign the regulation soon.
"Social commerce can only facilitate the promotion of goods and services, not direct transactions," he said.
The minister said social media and e-commerce "should be separated", adding that the government would impose a $100 minimum purchase per transaction on imported goods.
TikTok Indonesia said the announcement raised concerns from sellers who market their products on the platform.
"Social commerce was born to solve a real-world problem for local traditional small sellers, by matching them with local creators who can help drive traffic to their online shops," the company's spokesperson said in a statement.
TikTok Shop has amassed more than two million Indonesian sellers since its launch.
Indonesia is TikTok's second-largest market, with 125 million users, according to company figures. It is owned by Chinese technology giant ByteDance.
TikTok's chief executive Shou Zi Chew visited Jakarta in June, pledging to pour billions of Dollars into Southeast Asia in the coming years.
Related Topics
Recent Stories
Revenue collection: Punjab govt collects Rs400m through e-stamping system
Realme's Commitment to Quality and Innovation: A Look at Q1 2024
OPPO A60: Ultimate Durability and Strength – Your Most Reliable Partner
Summer holidays in schools, colleges to start from June 1
Jinnah House attack case: Yasmin Rashid, Umar Cheema get bails
PCB to finalize squad for ICC T20 World Cup 2024 as deadline nears
SC issues Show-cause notices to Vawda, Kamal over presser, remarks about judges
Cricket Australia establishes Pakistan Fan Zones for all six matches
Nassau County International Cricket Stadium New York is ready to host the T20 Wo ..
Pakistan International Airlines (PIA) started a flight from Al Ain airport to Tu ..
Deputy PM to lead Pakistani delegation at SCO CFMs meeting
CNICs issuance, renewal: Naqvi vows to start facility at UC level
More Stories From World
-
Slovak PM has new surgery, condition 'still very serious'
4 minutes ago -
First aid enters Gaza via US-built pier
4 minutes ago -
Golf world no. 1 Scheffler detained outside PGA course: US media
44 minutes ago -
Israel strikes on Lebanon kill Hezbollah fighter, two children: group, official media
44 minutes ago -
UN denounces 'intimidation & harassment' of lawyers in Tunisia
54 minutes ago -
UN denounces 'intimidation and harassment' of lawyers in Tunisia
1 hour ago
-
Aid groups warn of mounting challenges to Gaza operations
1 hour ago -
Toshiba to cut up to 4,000 jobs in Japan
2 hours ago -
Energy transition risks critical mineral shortage: IEA
2 hours ago -
Three footballers in Australia's top tier charged in betting scandal
2 hours ago -
UN has got only 12% of funds sought for war-wracked Sudan
2 hours ago -
11 ‘Advanced Caravans’ comprising 2,177 Pakistani Hujjaj leave Madinah for Makkah
2 hours ago