• An Indonesian minister accuses TikTok of violating in-app transaction bans despite controlling the country’s largest e-commerce platform.
  • TikTok’s plans for significant investment in Southeast Asia, including Indonesia, face scrutiny amid ongoing regulatory concerns.
  • Despite completing a major acquisition in Indonesia, TikTok faces challenges regarding compliance with local laws, prompting government officials to consider their response.

On February 20, an Indonesian cabinet minister stated that the short video app TikTok still violates Indonesia’s ban on in-app transactions, despite controlling the country’s largest e-commerce platform and restarting its online shopping business. In response, the Indonesian Ministry of Trade stated that it is still considering the best course of action regarding this issue.

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The ban is to protect small businesses and user data

TikTok announced plans last year to invest billions of dollars in Southeast Asia, including Indonesia, the region’s largest economy. Last year, Indonesia banned online shopping on social media platforms citing the protection of small businesses and user data, leading TikTok to shut down its relatively new e-commerce service platform TikTok Shop in Indonesia.

The opposition to TikTok Shop is frequent

Even before the ban was issued, Indonesian Minister of Small and Medium Enterprises Teten Masduki often opposed TikTok Shop, telling reporters that TikTok still failed to comply with regulations. He believed that the Trade Minister must condemn TikTok and ensure its compliance, otherwise the government’s authority would be undermined.

Last month, an Indonesian tech group stated that TikTok, owned by Chinese company ByteDance, had formally completed its December acquisition of 75.01% of Tokopedia‘s shares for $840 million. Indonesian Deputy Trade Minister Jerry Sambuaga had previously stated that as long as TikTok complies with applicable Indonesian laws and procedures, it is free to collaborate with any e-commerce platform.

Currently, TikTok’s representatives in Indonesia have not responded.