Jakarta, IO – The official decision was announced by Trade Minister Zulkifli “Zulhas” Hasan after a limited cabinet meeting with President Joko “Jokowi” Widodo at the Presidential Palace, Jakarta, Monday (25/9).
He said social media must only be strictly used for promotion, like the role of television. The decision is stipulated in the amended Trade Ministerial Regulation (Permendag) on Business Licensing, Advertising, Guidance and Supervision of Business Players in Trading Through Electronic Systems.
“Social commerce can only facilitate the promotion of goods or services, not direct transactions, no direct payments. This will no longer allowed,” said Zulhas, per Detikcom, Tuesday (26/9).
According to him, this measure was taken to prevent misuse of personal data by social media. The new regulation would also regulate the sales of goods sent from abroad and minimum purchase transactions for imported goods.
This means that imported goods sold on e-commerce must also be treated the same as domestic products. For example, there must be halal certification for food products.
The regulation was issued in response to complaints from the micro, small and mid-sized enterprises (MSMEs) about trading activities in social commerce, such as TikTok Shop which allows imported goods can be purchased directly by Indonesian consumers.
Small businesses protested because the prices offered on social commerce were very cheap. It is feared that this competition will force MSMEs out of business. (un)