Selasa 31 Oct 2023 15:46 WIB

TikTok Must Obey Indonesia's Regulation if It Wants to Do Business

TikTok Shop must open its own platform that is no longer combined with social media platforms.

Rep: Tim Cari Cuan/ Red: Fitriyan Zamzami

The Indonesian Chamber of Commerce and Industry (Kadin) expressed its support for the government's commitment asking TikTok to comply with the established regulations if it wants to reopen TikTok Shop in the country.

“We fully support the government. Any company that will operate in Indonesia must comply with the regulations. That is what we are asking for,” said Acting Chairman of Kadin Indonesia, Yukki Nugrahawan Hanafi, during a press conference on Update of Kadin Indonesia Work Program in Menara Kadin, Jakarta, Monday, October 30, 2023.

Yukki stated that Kadin Indonesia's commitment to protect the sustainability of Medium-sized Micro Enterprises (MSMEs) has been conveyed directly to Minister of Cooperatives and SMEs Teten Masduki. According to him, it is unfair that only local entrepreneurs are burdened with the obligation to comply with various regulations in order to be able to do business. On the one hand, foreign entrepreneurs can easily do business and scoop up the coffers in Indonesia.

“This is what we continue to fight for. Especially for those who do not yet have legality in this republic, please try well but also open up legality. Some of them just open a representative here, I don't think it's healthy,” Yukki said.

Efforts to support SMEs moving up the class, Yukki continued, are not only demonstrated by supporting policies that have been set by the government. Kadin Indonesia has committed to making a significant impact through a series of work programs established at Rapimnas 2022, including MSMEs moving up the class, increasing international collaboration and strengthening the organization.

Until now, Kadin Indonesia has successfully implemented a number of programs to increase the competitiveness of MSMEs in real terms.

Yukki details that this support was realized through the Indonesia Catalogue Expo and Forum (ICEF) 2023, held together with the Government Procurement Policy Institute for Goods/Services (LKPP), which encourages the use of local products and services through digitization and procurement systems with e-catalogs.

In addition, with the holding of Trade Expo Indonesia, Kadin showcases Indonesia's top products while facilitating business meetings to attract investment and encourage exports. “In fact, through the WikiExport Japan program, Kadin has connected more than 200 SMEs with Japanese business people, and generated exports worth Rp 10 billion in August,” Yukki added.

Regarding the Chinese platform TikTok, TikTok CEO Shou Zi Chew has submitted a request to meet with Indonesian President Joko Widodo after the Indonesian government decided to close TikTok Shop. However, President Jokowi required that Shou Zi Chew first meet with the Minister of KOPUKM Teten Masduki to discuss the further fate of TikTok Shop in Indonesia.

Minister Teten said that in order to return to business in Indonesia, TikTok Shop must open its own platform that is no longer combined with social media platforms. Another option is that TikTok invests in e-commerce platforms in Indonesia.

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