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TikTok Shop's Potential Reopening Faces Government Objection

The Jakarta Globe
October 25, 2023 | 6:39 pm
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Investment Minister Bahlil Lahadalia at the BNI Investor Daily Summit 2023 held at Hutan Kota by Plataran, Jakarta, on Oct. 25, 2023. B-Universe/David Gita Roza
Investment Minister Bahlil Lahadalia at the BNI Investor Daily Summit 2023 held at Hutan Kota by Plataran, Jakarta, on Oct. 25, 2023. B-Universe/David Gita Roza

Jakarta. Investment Minister Bahlil Lahadalia dismissed the possibility of TikTok Shop, a social commerce app, making a return in Indonesia. The decision follows the discontinuation of the social media company's e-commerce features due to government regulations prohibiting such platforms from engaging in online retail activities.

"That's not allowed. TikTok is a social media platform, not an e-commerce platform," Bahlil said at the sideline of the BNI Investor Daily Summit at Hutan Kota by Plataran on Wednesday.

Earlier, there were reports about TikTok Shop potentially resuming its operations on November 10, 2023. TikTok's CEO, Shou Zi Chew, was reported to have requested an audience with President Joko "Jokowi" Widodo. 

While acknowledging the possibility of TikTok Shop reopening, Bahlil emphasized that such a decision would need to meet the government's set criteria. However, he also expressed his view that TikTok should primarily function as a social media platform.

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"Let's keep TikTok as a social media platform. We shouldn't overly regulate and monopolize our nation," Bahlil added.

TikTok Shop was banned as the government is working to "maintain the balance" between online trading and offline market activities to prevent local shops from going out of business.  While TikTok can still endorse products, it is not permitted to run its own e-commerce platform.

Xinyi Group's Investment in Rempang
Bahlil also confirmed that China's Xinyi Group's $11.5 billion (Rp 182,7 trillion) investment in Rempang, Batam, Kepulauan Riau, will proceed as planned.

"Xinyi Group's investment is not facing any issues. It's a matter of time. If you (the media) could assist in conveying that the residents of Rempang are open to this investment, it would be greatly appreciated. This would expedite the process," he said.

Despite facing challenges in the process of relocating Rempang residents, the government remains committed to proceeding with investment in that area. Bahlil mentioned that there is a set target for the groundbreaking, but he opted not to divulge specific details about the Rempang Eco City project.

Previously, riot police were dispatched to Rempang on Sept. 7, 2023, to manage a situation where residents were attempting to obstruct the work of local authorities conducting land measurement for the development of the project.

President Jokowi blamed the incident on a breakdown in communication between local authorities and the island's residents.

"There is an existing agreement stipulating that each family will receive 500 square meters of land and a 45-square-meter house. Unfortunately, this information was not effectively conveyed, leading to the recent incident," the president said last month during a visit to Cilegon, Banten province.

Under a mediation led by Bahlil, 70% of the residents of Pasir Panjang in Rempang, Batam, Kepulauan Riau, agreed to relocate. Pasir Panjang is one of the five villages prioritized for relocation, with 150 households living in the area.

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