Tokopedia, the e-commerce business unit of PT GoTo Gojek Tokopedia Tbk. (GOTO), has spoken up about the threat of sanctions from the Ministry of Trade towards TikTok Shop if it continues to conduct transactions on the application.
Tokopedia has emphasized that the transaction activities on the application have been approved by the Ministry of Trade.
The Head of Communications of Tokopedia, Aditia Grasio Nelwan, stated that the company and TikTok have obtained the necessary licenses to conduct transactions on the TikTok application.
During the next 3-4 months, he continued, it will be a trial period as they transition towards facilitating e-commerce transactions through PT Tokopedia. “In principle, the payment process will take place in the Tokopedia system and TikTok will be the platform that displays product options for consumers,” said Aditia to Bisnis on Friday (December 22, 2023).
It is known that TikTok is on track to make a long-term investment of US$1.5 billion or around Rp23 trillion in Tokopedia. This investment will make TikTok hold 75% of the shares in PT Tokopedia.
In line with the investment plan, the yellow cart feature on TikTok, which is commonly used for transactions, has been reopened after being closed for 70 days. The reason for the reopening is that TikTok and Tokopedia are conducting transaction trials on the platform.
Aditia stated that during the trial period, the company will migrate the system from TikTok Shop to Tokopedia while still providing a comfortable and easy seamless experience to consumers in the Tokopedia user interface.
“The transition during this trial period is continuously consulted and monitored by the relevant ministries and institutions,” said Aditia.
Meanwhile, the Director General of Domestic Trade at the Ministry of Trade (Kemendag), Isy Karim, spoke up about the reason why they gave TikTok Shop 3-4 months to separate its transaction feature from the social media platform.
Isy claimed that the transition period is actually a policy of Kemendag that is given to all platforms to adjust to the applicable regulations. This means that not only TikTok is given time to make the transition.
“It’s the same as other e-commerce platforms, like Shopee with its cross-border rules. Because the application is overseas, TikTok Shop needs to make adjustments and time,” said Isy when met at the Kemendag office on Wednesday (December 20, 2023).
However, Isy admitted and did not deny that there is actually no written rule regarding the transition period.
He emphasized that they have studied the operational model of TikTok Shop and asked them to immediately adjust to Permendag No.31/2023.
“There is no written rule, today from their explanation [TikTok and Tokopedia] they only need to provide a system,” he explained.
Kemendag promised to impose sanctions on TikTok and Tokopedia if transactions still occur on the TikTok application after 4 months.
Source: Tokopedia (GOTO) Buka Suara soal Ancaman Sanksi Kemendag ke TikTok Shop (msn.com)
