Indonesian President Joko Widodo has expressed concern over the impact of social commerce platforms like TikTok Shop on micro, small, and medium enterprises (MSMEs) and traditional merchants, asserting that TikTok should remain a social media platform rather than morph into an e-commerce entity. In response to the emerging landscape, the government has crafted a regulation to oversee trade on such platforms to maintain price competition and safeguard MSMEs and conventional market merchants. The new rules, awaiting the Trade Ministry’s approval, will integrate into the amendment of a current regulation governing electronic system trade activities, aiming to institute a balanced business environment without imposing a ban on TikTok Shop.
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