He also emphasized that the collaboration between TikTok Shop and one of the e-commerce platforms would not undermine competition. “We cannot forbid [TikTok] from partnering with anyone; B2B cooperation is not a problem, as long as everything complies with the rules. It depends on how society evaluates which offers are better and which services are better,” Temmy said during an interview at the Ministry of Cooperatives and SMEs building in Jakarta on Friday, November 17, 2023. He explained that the issue that led to the closure of TikTok Shop in October was due to the lack of a permit to trade. TikTok only had a Representative Office Permit for Foreign Trade Companies (KP3A) in Indonesia. With this permit, TikTok was only allowed to operate as a social media platform serving consumer complaints and market research.
He continued, stating that China had also issued regulations prohibiting monopolies on a platform following the dominance of the e-commerce giant Alibaba in the country. Temmy mentioned that Alibaba now only has around 30% of the e-commerce market share, down from the previous 70%. “Before TikTok, everything was fine [with e-commerce in Indonesia]. TikTok didn’t have a permit yesterday, so it was closed. In its home country, regulations are in place, so why not in Indonesia?” said Temmy.
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The TikTok saga, from being banned in Nepal to venturing boldly into e-commerce in Indonesia, illustrates that the social media platform does not shy away from obstacles and challenges. Despite facing bans in several countries, TikTok is not just finding ways to survive but is also expanding into new sectors, such as e-commerce. This move demonstrates TikTok’s ability to adapt to regulatory changes and take risks to grow and evolve.
As TikTok users or industry observers, we will continue to witness how the platform responds to the dynamics of regulatory changes and the extent to which TikTok can achieve success in their e-commerce venture. Perhaps, TikTok’s creativity is not limited to entertaining content but also extends to innovation in the evolving business world.
