KONTAN.CO.ID - JAKARTA. Short video app TikTok said it will halt transactions on its platform in Indonesia from Wednesday following the country's new ban on e-commerce trade on social media. TikTok, which is owned by China's ByteDance, said in a statement on Tuesday that it would coordinate with Indonesia's government regarding its future plans. "Our priority is to remain compliant with local laws and regulations. As such, we will no longer facilitate e-commerce transactions in TikTok Shop Indonesia," the company said.
Baca Juga: Gold Down for Seventh Day on Higher Dollar, Yields; US Jobs Data Eyed The Indonesian government has said the ban, imposed last week, is aimed at protecting offline merchants and marketplaces, adding that predatory pricing on social media platforms is threatening small and medium-sized enterprises. It was unclear from the statement whether TikTok will create a new e-commerce app, separate from its social media app. TikTok's decision is in line with the Indonesian government's grace period to comply with the new rule of one week, to avoid the threat of closure. At a Jakarta wholesale market, vendors like Nilam, who goes by one name and sells locally-made pants, fear being left out of pocket. She said she earns 80% of her revenue on TikTok Shop and does not know how she can replace the platform. Baca Juga: Oil Edges Lower on Strong US Dollar, Mixed Supply Cues
