In a forward-thinking move, Indonesia has placed restrictions on social commerce a.k.a. integrating e-commerce directly within social media platforms.

The country's trade ministry announced that social media can shine a spotlight on goods and services, but cannot have direct payment channels within them? It aims to level the playing field. He emphasizes the struggles of small-scale retailers and local e-commerce platforms, who often find themselves in a tough spot against the data-rich giants of social commerce. Additionally, this strategic move ensures businesses adhere to licensing norms and taxation structures.

Another pressing matter addressed? The unintended preference for imports over local manufacturers in the world of social commerce.

TikTok takes a Blow 💥

These news may be positive for smaller retailers, but in the case of TikTok it's a very hard pill to swallow. Being a significant player in the social commerce arena, TikTok holds Indonesia as its prime e-commerce market outside China. While the platform champions the notion of boosting local retail through its services, the new regulations are going to prompt retailers to take social commerce matters into their own hands. With the elimination of check-out functionalities on social media platforms, the traffic will naturally diverge towards online shops. Retailers now have the opportunity to mimicking the TikTok experience, by creating their own shoppable content, and broadcasting it on their online shops.

Navigating the digital horizon with prudence, Indonesia sets the tone for a balanced e-commerce future, empowering their local economy.

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