Indonesia bans e-comm transactions on social media

Indonesia has imposed a ban on social media -platforms from doubling as e-commerce sites in order to prevent misuse of data, as reported in the news. The announcement was made on 25 September. Trade Minister Zulkifli Hasan, after a closed meeting on electronic commerce issues, said, "Social media can only be used to facilitate the promotion of goods or services, but direct transactions... "And direct payments are no longer allowed; social media can only be used for promotion."

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According to the media news channel, under the country's Revised Ministry of Trade Regulation, a minimum import transaction of USD 100 will also be imposed on goods purchased from abroad. The ban has disappointed buyers; however, the sellers at physical stores in Indonesia have celebrated the move.

Moreover, people in Indonesia expressed distress as they lost a cheaper shopping alternative.

Subairi, a factory worker from West Java, has relied on TikTok Shop for the past two months to buy his daily necessities. But, following the announcement, he is worried over the loss of cheaper alternatives, according to the news reported.

The 38-year-old Subairi said, "If TikTok Shop is banned, I will find it difficult to find items that are as cheap as those sold there."

"On other e-commerce platforms, the service fee is almost 10,000 rupiah (USDO.64), but on TikTok Shop, it is totally free, with no conditions," he added. Moreover, he emphasised that the flash sales and payday promotions on TikTok Shop, offered at the end of the month, make the prices much cheaper, reported Channel NewsAsia.

He has been comparing the prices of goods across various e-commerce platforms and found those sold on TikTok Shop to be the cheapest.