TikTok says it regrets Indonesia's decision to to ban e-commerce sales on social media platforms

(28 Sep 2023)
RESTRICTION SUMMARY:

ASSOCIATED PRESS
Greater Jakarta - 28 September 2023
1. Muhamad Zidan and Drei Permana walking while pushing their bicycles
2. Bicyclists gather while sitting on tarpaulin
3. Zidan and Permana checking their mobile phones
4. Permana open TikTok shop in his mobile phone
5. SOUNDBITE (Indonesian) Drei Permana, Tiktok user:
"Tik Tok is a quite informative platform because there we can find lots of things that can be bought there and all the information of goods for sale is easy to get plus, the most important thing is that the goods sold on Tiktok are very cheap so it will have quite a big impact with the government statement released (banning Tiktok shop)."
6. Close up of Zidan's Tik Tok seller account
7. SOUNDBITE (Indonesian) Muhamad Zidan, Content creator and seller:
"There should be a win-win solution because if not there will be a lot of losses that we and other sellers and companies will experience where the income comes from the Tiktok platform because currently Tiktok has high exposure for sales."
8. Various of a woman selling clothes live on Tik Tok
9. Piles of clothes
10. Wide of women selling cloths live on Tik Tok
STORYLINE:
Chinese-owned app Tik Tok on Thursday said it regretted the Indonesian government's decision to ban e-commerce transactions on social media platforms and particularly the impact it would have on the millions of sellers who use Tik Tok Shop.

Indonesia banned goods transactions on social media platforms such as TikTok in a bid to protect small businesses from e-commerce competition, accusing them of predatory pricing.

Tik Tok user and bicyclist Drei Permana said the cheap and easy purchases from the app will be missed.

In Indonesia, Southeast Asia’s largest economy, TikTok has 2 million small vendors selling their wares on its platform.

Southeast Asia, a region home to more than 675 million people, is one of Tik Tok’s biggest markets in terms of user numbers, generating more than 325 million visitors to the app every month.

Tik Tok had 8,000 employees to facilitate $4.4 billion of transactions across the region last year, up from $600 million in 2021. But it still trailed far behind Shopee’s $48 billion in regional merchandise sales in 2022, according to Singapore-based Momentum Works, a business development service.

Countries including the United States, Britain and New Zealand have banned the app on government phones, despite Tik Tok repeatedly denying that it has ever shared data with the Chinese government and would not do so if asked.



AP video shot by Fadlan Syam and Tatan Syuflana

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