TikTok calls for ‘level playing field’ as Indonesia mulls ban on social commerce

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Jofie Yordan also contributed to this story.

TikTok is calling for the Indonesian government to provide a “level playing field” amid calls to ban the selling of goods through social media.

“Forcing social media and ecommerce to separate into different platforms would not only hamper innovation, it would also disadvantage Indonesian merchants and consumers,” said Anggini Setiawan, head of communications for TikTok parent ByteDance in Indonesia.

She added that almost 2 million local businesses sell their goods through TikTok.

This is the latest in a series of back-and-forths between TikTok and the Indonesian government.

Jerry Sambuaga, Indonesia’s deputy minister of trade, recently announced his ministry’s plans to separate licenses for social media and social commerce in a parliamentary hearing.

Previously, Teten Masduki, Indonesia’s minister for cooperatives and SMEs, raised concerns over TikTok’s Project S as well as its purported “monopolistic practices”.

Before Sambuaga’s comments, the Ministry of Trade had announced plans to ban imported goods below US$100 in ecommerce platforms in a bid to protect Indonesian MSMEs.

TikTok Shop’s explosive rise has spurred heightened interest from ecommerce incumbents in Southeast Asia. Shopee, for one, is investing in its livestreaming capabilities to counter TikTok’s growth. It’s unclear whether the new laws will affect Shopee.

Meta’s Instagram also has live shopping features in Indonesia in addition to the presence of Instagram-native shops. However, unlike TikTok Shop, buyers cannot transact directly on the platform. Instead, they have to make payments through bank or or e-wallet transfers, or access the product on the seller’s Shopee or Tokopedia account.

See also: TikTok’s live-commerce boom: hustler’s paradise or fleeting trend?