TikTok Ceases Operations Following Indonesia's Ban on the App

TikTok Halts Online Shopping Service in Indonesia in Compliance with New Regulations

Indonesia Implements Regulations to Separate TikTok's Shopping Feature from Social Media

The country's government has introduced regulations aimed at safeguarding local physical and online retailers.

Indonesia, a significant market for TikTok Shop, was the first to pilot the app's e-commerce service in 2021.

In a recent announcement, Indonesia's trade minister, Zulkifli Hasan, stated that e-commerce and social media must be separated, giving social media platforms a one-week deadline to comply with the new rules or risk losing their operating licenses.

This development comes in response to President Joko Widodo's concern about the need for regulations in the e-commerce sector.

TikTok, in response to the regulations, stated that it would cease facilitating e-commerce transactions in TikTok Shop Indonesia to ensure compliance with local laws.

Online retailing in Indonesia has experienced significant growth, with e-commerce sales projected to reach 689 trillion Indonesian rupiah ($44 billion) by the next year, according to the country's central bank.

TikTok Shop had been gaining ground in Indonesia's online shopping market, which is primarily dominated by platforms like Tokopedia, Shopee, and Lazada.

With more than 278 million people and 125 million TikTok users, including 6 million sellers and numerous content creators using TikTok Shop, Indonesia is a critical market for the platform.

TikTok's CEO, Shou Zi Chew, previously pledged substantial investments in the region over the next few years during a visit to Indonesia in June.

The surge in online retailing has had a significant impact on physical shop owners like Sukmamalingga, who has been operating a store at Jakarta's Tanah Abang Market for nine years.

Government data indicates that Indonesia is home to over 64 million small and medium-sized enterprises, accounting for a substantial portion of the country's economy.

These new regulations pose yet another challenge for TikTok, which has faced scrutiny in the US, European Union, and the UK, where it has been banned from certain networks due to security concerns

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