TikTok, fear o’clock

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Hello reader,

My mantra when it comes to a lot of things in life is: It’s better to be safe than sorry.

If I can’t make it to the airport at least two hours before even a domestic flight, I’m not exactly the most relaxed traveling companion. And while anyone who travels with me and notices this particular brand of neurosis finds it pretty funny, I’ve never missed a flight.

Some Indonesian politicians want to take a similar approach to TikTok’s ominously named Project S. While the social media giant’s latest foray into ecommerce may never make it to the archipelago and impact small businesses, it might just be better to be safe than sorry.

Today we look at:

• The TikTok initiative causing alarm in Indonesia
• The tax hike set to hamper Indian’s gaming sector
• Other newsy highlights such as a big-time gas deal for a serial entrepreneur and the lorry safety row in Singapore.

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Premium summary

Ticking, tocking time bomb?

Similar to Amazon Basics, Project S is TikTok’s attempt to sell its own products directly on the platform.

While the project has only been piloted in the UK so far, Indonesian politicians fear if it comes to their country, it could pose a threat to the country’s microbusinesses and small and medium-sized enterprises.

• Rule revision: Teten Masduki, Indonesia’s minister of cooperatives and SMEs, wants the Ministry of Trade to revise its rules on online trading now, rather than waiting for Project S to reach the country. One of his recommendations is a ban on direct cross-border sales made via ecommerce.
• Competition heating up: TikTok Shop does have a presence in Indonesia, and Masduki fears that if Project S arrives, TikTok’s algorithm will push users to its own products rather than those sold by small local businesses. Some online sellers share his fears.
• Path forward: According to Nailul Huda, a researcher at the Institute for Development of Economics and Finance, TikTok could bring Project S to Indonesia, but it would require some major adjustments. He says imported goods could be sold as long as they go through the proper import channels, which would likely raise the cost of said goods.

Read more: TikTok’s Project S triggers alarm bells in Indonesia

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Game off?

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