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Hi readers,
In the past week, social media has been abuzz with arguments for and against the closure of TikTok Shop in Indonesia.
Some agree with the government’s decision, but many, particularly sellers, are against it.
The comment sections on Instagram posts from Trade Minister Zulkifli Hasan and Cooperatives and SMEs Minister Teten Masduki are flooded with protests from TikTok Shop sellers and affiliates who feel aggrieved. Logistics couriers have also expressed their concerns about the closure.
However, TikTok Shop is preparing for a comeback as a standalone app. Some sellers have tried their luck on other platforms, but a few are still active on TikTok while waiting for the new app to be launched.
The possible return of TikTok Shop in the archipelago raises questions about the government’s true purpose of banning ecommerce transactions on social media.
If the issues the government tried to address were predatory pricing and TikTok’s algorithm, which was suspected of directing users to specific products, both may still be present in the future TikTok Shop app.
TikTok is likely to connect its algorithm on social media with its ecommerce app. It may also continue to implement the same subsidy strategies as before.
So, the government may need to focus on regulating these issues rather than outright banning transactions on social media.
— Jofie Yordan, journalist at Tech in Asia
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Image credit: Timmy Loen
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