Jakarta. Trade Minister Zulkifli Hasan confirmed on Wednesday that the video-sharing app TikTok has ceased its e-commerce platform known as TikTok Shop in Indonesia. 

This move comes following the issuance of a government regulation that prohibits social media companies from hosting online trade.

“We thank TikTok for their cooperation. I have received their letter confirming that TikTok will comply with government regulations," Zulkifli said during a visit to the ITC Mangga Dua shopping center in North Jakarta.

While commending TikTok for adhering to the rule, Zulkifli emphasized the inevitability of technology in trade. He encouraged local entrepreneurs to enhance their trading skills on digital platforms and acquire foreign language proficiency to expand their market reach.

Zulkifli also noted that the government is working to "maintain the balance" between online trading and physical market activities to prevent local shops from going out of business.

TikTok is still allowed to promote products but is prohibited from operating its own e-commerce platform.

"For instance, TV networks can broadcast advertisements but they are not permitted to establish shops," Zulkifli said.

In a statement, TikTok Indonesia announced the closure of its e-commerce feature, which started at 5:00 p.m. Jakarta time.

“Our priority is to remain compliant with local laws and regulations. As such, we will no longer facilitate e-commerce transactions in TikTok Shop Indonesia by 17:00 GMT+7, October 4, and will continue to cooperate with the relevant authorities on the path forward,” the tech giant said.