The government, represented by the Ministry of Trade (MoT), has plans to prohibit social media platforms like TikTok from offering e-commerce services within the same application. The rationale behind this move is to safeguard domestic industries from fierce competition with imported products.

However, the Minister of Tourism and Creative Economy, Sandiaga Uno, holds a different perspective. He argues that banning social media and e-commerce, such as TikTok Shop, within a single application could disrupt Micro, Small, and Medium Enterprises (MSMEs). Currently, many MSMEs rely on TikTok Shop as their trading platform.

According to Sandiaga Uno, "With over 100 million TikTok users, such a ban would have significant repercussions, especially as we are striving to revive the economy."

Responding to Sandiaga's statements, the Minister of Cooperatives and MSMEs, Teten Masduki, states that there is currently no clear national strategy and relevant authority regarding digital economy. This has led to differences of opinion within the government.

Teten Masduki comments, "Ministers lack clear guidelines, even though digital transformation involves various aspects." He also observes a significant acceleration in e-commerce transformation, while the domestic production sector lags behind, unable to keep up with the pace of change in the e-commerce world.

"This lag results in local products being less competitive than cheaper and higher-quality imported products, due to their more efficient production," he adds. The negative impact of this situation is evident in the losses suffered by businesses with physical stores, such as those in Tanah Abang. Meanwhile, MSME products also struggle to compete with imported products on e-commerce platforms.

Teten Masduki states, "Indonesian MSMEs lack digital technology capabilities, and the number of digital applications that can assist the MSME supply chain remains limited."

Therefore, the government is currently considering revisions to Ministerial Regulation Number 50 of 2020 concerning Business Licensing, Advertising, Development, and Supervision of Business Actors in Trade Through Electronic Systems. The primary goal is to create a more equitable competitive environment for business actors.

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