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

TikTok, a Chinese-owned app, expressed regret over the Indonesian government's decision to ban e-commerce transactions on social media platforms. The ban is expected to have a significant impact on the millions of sellers who use TikTok Shop. However, TikTok Indonesia stated that they will respect the regulations and laws in Indonesia and take a constructive approach moving forward. The government implemented the ban to protect small businesses from e-commerce competition, citing predatory pricing as a concern. The decision was announced by Indonesia's Trade Minister after a meeting with President Joko Widodo. The ban aims to prevent algorithm domination and the use of personal data for business interests. The Minister of Cooperatives and Small and Medium Enterprises found that sellers were experiencing significant profit losses due to competition from imported products sold online at lower prices. The government believes that the new regulation will promote fair trade both online and offline, and it applies to all social commerce platforms, not just TikTok Shop.