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TikTok must follow rules or face exit from Indonesia, minister says

Jakarta Globe - September 25, 2023

Chairul Fikri, Jakarta – An Indonesian minister on Monday delivered a strong rebuke to tech giant TikTok for continuing to host live shopping on its platform, saying the video-sharing app will be shown the door if it doesn't follow the rules.

Investment Minister Bahlil Lahadalia said TikTok's license in Indonesia primarily covers social media activities, and failure to comply with this could result in the revocation of its license.

"The license granted to TikTok is not intended for conducting trade transactions but primarily for operating as a social media platform. If they fail to adhere to this condition, I may be forced to take the decision to revoke their license," Bahlil told reporters at his office in Jakarta.

He further emphasized that the government has no intention of engaging in negotiations with TikTok regarding this matter.

"Why should we? It is their responsibility to abide by the regulations of our nation. If they have objections, they are free to leave the country, and it won't have any adverse impact on us," Bahlil added.

He said that while TikTok is permitted to operate in Indonesia as a social media platform, it is not authorized to engage in e-commerce activities, adding that the government is actively reevaluating e-commerce regulations to prevent tax evasion in cross-border trade.

"Goods entering Indonesia must be stored in warehouses until all applicable taxes are settled. Additionally, we are in the process of crafting a regulation, under the guidance of the Trade Minister, which will prohibit social media platforms from facilitating e-commerce transactions," Bahlil said.

Source: https://jakartaglobe.id/tech/tiktok-must-follow-rules-or-face-exit-from-indonesia-minister-say