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Trade Ministry: The 'Shop Tokopedia' is now compliant with regulation

Jakarta Post - April 26, 2024

Josa Lukman, Jakarta – The Indonesian government through the Trade Ministry has affirmed that the integration of e-commerce platform Tokopedia with TikTok Shop into Shop Tokopedia is in line with Trade Ministry Regulation (Permendag) No. 31/2023.

Isy Karim, the Trade Ministry's Director General of Domestic Trade, told reporters on Thursday that both entities will only need to rectify the permits, as Shop Tokopedia's backend and frontend already comply with the regulations.

"Everything is in compliance (with the regulations). We will soon be in contact with Shop Tokopedia as the replacement of TikTok Shop," he said during the sidelines of a Trade Ministry event.

Isy noted that though every aspect of Shop Tokopedia is in adherence to the regulations, the Trade Ministry is still monitoring and anticipating changes to Shop Tokopedia, especially in the app's backend.

"We will monitor the app continuously; we will have to send for the backend, but the frontend we can monitor directly. Should there be something not in adherence, we will have to summon (the Shop Tokopedia team) for the backend," he explained.

Previously, Tokopedia President Melissa SIska Juminto said in a statement that the transition process of TikTok Shop's electronic system has run smoothly due to the commitment of all stakeholders, including support and guidance from the Trade Ministry and the Cooperatives and SME Ministry.

In December 2023, the Trade Ministry set a four-month service trial period for TikTok Shop in order for Tokopedia and TikTok Shop to complete their transition process.

"We can confirm that as of March 27, 2024, Tokopedia and Shop Tokopedia has completed and fulfilled all conditions of the trial period set out by the Trade Ministry," she said, adding that both Tokopedia and Shop Tokopedia is now fully compliant with Trade Ministry Regulation No. 31/2023.

The e-commerce service built into the TikTok app, receiving the new name of Shop Tokopedia, is fully operated by Tokopedia and has been migrated into Tokopedia's system.

Melissa asserted that with Tokopedia integrated into TikTok's e-commerce service, both apps will retain their own separate database between the social media users as well as customers of the e-commerce service.

"TikTok and TikTok Shop users have been separated, where each will have their own user ID for TikTok and the e-commerce service. All user data for the (e-commerce) customers have been integrated into Tokopedia," she said.

Currently, Tokopedia owns two e-commerce ecosystems, the independent Tokopedia e-commerce platform with its own app as well as Shop Tokopedia that is integrated into the TikTok app.

Source: https://www.thejakartapost.com/business/2024/04/26/trade-ministry-the-shop-tokopedia-is-now-compliant-with-regulation.htm