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China Opens Voice about the Indonesian Government Prohibiting Tiktok Shops

China  opened its voice after Trade Minister Zulkifli Hasan (Zulhas) officially banned social commerce such as TikTok Shop to sell and serve buying and selling transactions.

Chinese Ambassador to Indonesia Lu Kang said he had examined the issue with a number of ministers and business people. He also understands the decision of the Joko Widodo (Jokowi) government regarding the ban on TikTok Shop.

“We actually understand Jokowi’s comments that they will try to protect the rights and benefits of various small and medium businesses here,” Lu told journalists at the Moon Cake Festival at the Chinese Embassy, ​​Jakarta, Wednesday (27/9).

Lu also realizes that it is important for the government to protect the business rights of the Indonesian people. However, he reminded Indonesia that it needed to think about the fate of investors.

“So, according to my assessment framework, this is legal, so it applies to all investors. Like media reports, in my opinion, on the one hand, this is important to protect people’s business rights,” he said.

Lu then said, “But on the other hand, this is also something that e-commerce players need to remind us to try to produce, to make the environment in which we work more attractive for investors, which is also in the interests of the Indonesian people in this development.”

Recently, the TikTok Shop phenomenon has disturbed micro, small and medium enterprises (MSMEs) in Indonesia. The goods sold by native Indonesian traders in marketplaces and offline stores are less competitive than TikTok products which are priced at low prices.

A number of goods sold at the TikTok Shop are also accused of being the result of cross-border trade. If true, the flood of imported goods means they are being offered directly to buyers without going through the proper importation process.

Minister of Cooperatives and SMEs Teten Masduki said that around 21 million local MSMEs have entered the marketplace. However, local traders are still unable to compete with the flood of imported goods.

“So he can provide information to MSME producers in China who want to enter Indonesia, so this is a threat. Because it is a threat to MSMEs. We have free trade, but I think every country also needs to protect MSMEs, so they don’t lose out in competition,” said Teten at the Red and White House of the Corruption Eradication Commission (KPK), in mid-September.

Responding to the uproar of sales on TikTok Shop, Zulhas then took a stand by banning sales on the platform.

This prohibition is contained in the Minister of Trade Regulation (Permendag) Number 31 of 2023 concerning Business Licensing, Advertising, Guidance and Supervision of Business Actors in Trading Through Electronic Systems which was promulgated on September 26 2023.

Source : CNN

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