(CTN News) -According to state news agency Antara, TikTok, the popular short video app, is currently in the process of acquiring an e-commerce permit from the Indonesian government.
This comes after Indonesia implemented a ban on e-commerce transactions on social media platforms in September, which greatly affected TikTok’s plans to invest a significant amount of money in Southeast Asia, particularly in Indonesia, the largest economy in the region.
Deputy Trade Minister Jerry Sambuaga stated that was previously non-compliant and lacked the necessary permit, but they are now addressing this issue.
TikTok is exploring ways to monetize its Indonesian user base, with a focus on e-commerce activities.
The company is partnering with local e-commerce platforms and retailers to promote their products and services on the platform, using its algorithm and user data to target relevant audiences.
TikTok is also experimenting with in-app shopping and live-streaming features to make it easier for users to discover and purchase products directly from the platform.
This focus on e-commerce in Indonesia is a smart move, given the country’s large and growing population and increasing appetite for online shopping.
Despite requests for comment, TikTok has not responded to the deputy minister’s remarks, raising concerns about their stance on the matter.
However, Reuters reports that TikTok has been in discussions with Indonesian e-commerce companies, including GoTo’s Tokopedia, Bukalapak.com, and Blibli.
The purpose of these discussions is undisclosed, but it suggests is exploring partnerships in the Indonesian e-commerce sector.
This adds an interesting dimension to the situation, indicating TikTok’s willingness to engage with local players and expand in the Indonesian market. However, without an official response, the true intentions and implications of these discussions remain uncertain.