The government's proposal to ban 'social commerce' goes against the direction of technological development. 'Social commerce' has been proven to have positive sides, such as opening up jobs and making it easier to reach consumers.
Tiktok to connect creators with sellers. Sellers in this context can have a background as a producer who also sells goods or just a trader. Then, creators who participate in the program are usually called affiliates. Their job is only limited to promoting the seller's goods and getting a commission.Almost all of Kiminori Kids' affiliates are housewives aged 20-40 from lower-middle-class backgrounds in small cities in Java or outside Java.
"The income as an affiliate is sufficient to help me have an emergency savings fund. I will definitely withdraw it when there is a very urgent need," she said.Previously, last week, Minister of Cooperatives and SMEs Teten Masduki proposed banning Tiktok as a place to sell. He argued that this platform had a monopoly through the concept of social commerce with its ability to influence users to shop online and make sales and payments on the same platform.
Quoting Reuters, Deputy Minister of Trade Jerry Sambuaga said that current trade regulations do not specifically cover e-commerce transactions on social media. Revision of Minister of Trade Regulation Number 50 of 2020 concerning Provisions for Business Licensing, Advertising, Guidance and Supervision of Business Actors in Trading Through Electronic Systems that is running will expressly prohibit social media and social commerce from being combined.
Responding to this, Tiktok stated that separating social media and e-commerce into different platforms would hinder innovation. Tiktok hopes that the Indonesian government will provide equality for companies. The Head of Communications for Tiktok Indonesia, Anggini Setiawan, said that separation would harm traders and consumers.
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