THE GOVERNMENT seems to have different voices regarding the reactivation of its TikTok business transaction service, namely TikTok Shop, following collaborating with Tokopedia since the end of last year.
TikTok is considered to have violated Minister of Trade Regulation Number 31 of 2023 concerning Business Licensing, , Guidance and Supervision of Business Actors in Trading Through Electronic Systems (PPMSE).
Minister of Cooperatives and SMEs Teten Masduki said that Permendag 31 clearly does not contain regulations that allow a transition period. According to Teten, the main thing is that there must be a separation between TikTok as social media and Tiktokshop.
“Because with Minister of Trade Regulation No. 31/2023 we are multi-channel. If you try to buy goods at TikTokshop, definitely don’t do the transaction at Tokopedia, but go to TikTokshop, that’s a complete violation,” said Teten, at BRI Microfinance Outlook 2024, Thursday (7/3) .
Even though there are provisions that permits can be revoked, considering that this is an investment interest, according to Teten, it would be better for them to be invited to comply with the rules. Because on the other hand, they definitely need to sell in Indonesia.
“Our market is 270 million people, if anyone is this big, they will definitely want to (comply). The problem is that we have the courage to say no. If the government is not consistent, then we will not be respected. Second, play with prices, right? This price has been regulated so that it doesn’t “hitting MSMEs. Platforms cannot have their own products. That must be emphasized. Otherwise, the algorithm will direct them to their products,” said Teten.
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In the Minister of Trade Regulation Number 31 of 2023 concerning Business Licensing, , Guidance and Supervision of Business Actors in Trading Through Electronic Systems (PPMSE), it is explained that social media cannot act simultaneously as e-commerce and transactions are not permitted.
This means that if TikTok wants to continue to have its trading business, namely TikTok Shop, it must have an official company permit as an e-commerce company. Until the end of last year, TikTok management collaborated with Tokopedia to reactivate its TikTok Shop.
In contrast to the Ministry of Cooperatives and SMEs, the Government through the Ministry of Trade has given TikTok a transition period to transfer all its transactions to Tokopedia so that it must comply with Minister of Trade Regulation Number 31. The transition period is given until April 2024.
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Some time ago, the Director General of Domestic Trade at the Ministry of Trade (Kemendag) Isy Karim revealed that 87 percent of TikTok Shops had complied with Minister of Trade Regulation 31 of 2023 concerning PPMSE.
This is because the TikTok Shop payment process will be the direct responsibility of Tokopedia. However, in payment transactions, the back end engineer method is used.
The back end is the part of the website that customers don’t see. In short, TikTok Shop payments will still be made in the same application, but under the responsibility of Tokopedia.
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“Now for the separation between TikTok Shop and Tokopedia, payments are made directly to Tokopedia and this is the back end,” said Isy.
The Ministry of Trade considers it legal if in the transaction process, the main display or front end engineer is still on the same application, namely TikTok Shop. Because, the back end process itself is all on Tokopedia.
“That’s fine because the back end is still in Tokopedia, it’s still separate, right? Well, from the naked eye it’s still in the same application, that’s because of their promise that they don’t want to bother users when they pay, they don’t want to jump out,” said Isy . (Z-8)
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