Indonesian Minister Accuses TikTok of Violating Ban on In-App Transactions
Indonesia’s cabinet minister stated on Tuesday that the Chinese short video app TikTok continues to flout the country’s ban on in-app transactions.
This comes after TikTok assumed control of Indonesia’s largest e-commerce platform to relaunch its online shopping service.
TikTok had to shutter its new e-commerce venture, TikTok Shop, in Indonesia following the country’s prohibition on social media platforms hosting online shopping, citing the safeguarding of smaller merchants and user data.
Indonesian tech conglomerate GoTo confirmed last month that TikTok, owned by China’s ByteDance, had finalized a deal to acquire 75.01% of Tokopedia for $840 million.
Teten Masduki, the Indonesian minister for small-medium enterprises (SMEs), who had previously criticized TikTok Shop before the ban, informed reporters that TikTok has yet to comply with the regulation. “The trade minister must caution TikTok to adhere to the regulations; otherwise…the government’s authority is compromised,” he remarked.
A representative for TikTok in Indonesia did not immediately respond to a Reuters request for comment. The trade ministry disclosed that it was still deliberating on the most appropriate course of action.
Last year, TikTok declared its intention to invest billions of dollars in Southeast Asia, including Indonesia, the region’s largest economy.
