JAKARTA, Indonesia– Indonesia has banned goods transactions on social media platforms in a new regulation, its trade minister said Wednesday, as Jakarta aims to rein in direct sales on major platforms it says are harming millions of small businesses.
A staff of a small shoe manufacturer shows their new products to make an introductory video to be posted on social media in Bogor, West Java on September 27, 2023. Indonesia has banned goods transactions on social media platforms such as TikTok, Facebook or Instagram in a new regulation, its trade minister said on September 27, as Jakarta aims to rein in direct sales on major platforms it says are harming millions of small businesses.
"Now, e-commerce cannot become social media. It is separated," Trade Minister Zulkifli Hasan told a news conference in the capital, Jakarta, adding that the trade regulation came into force on Tuesday."Any government would protect local small businesses," he said, describing the regulation as a way to ensure"equality in business competition".
Laws in the archipelago nation did not cover direct transactions through social media platforms such as TikTok, Facebook or Instagram before the new regulation. "We respect local laws and regulations and will be pursuing a constructive path forward," it said in a statement.- 'Markets are quiet' -Hasan appeared to confirm the companies would have to choose between separate social media and e-commerce licences.