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TikTok in the Process of Obtaining E-commerce Permit in Indonesia

Updated: Jan 5

TikTok, the popular short video app, is currently in the process of obtaining an e-commerce permit from the Indonesian government, according to state news agency Antara.

Credit: Unsplash

This move comes after Indonesia banned e-commerce transactions on social media platforms in September, which had a significant impact on TikTok's operations in the country.

The deputy trade minister, Jerry Sambuaga, stated that TikTok was previously non-compliant and did not have the necessary permit. However, the company is now taking steps to rectify the situation. Sambuaga also mentioned that TikTok could potentially form a partnership with a local firm as long as it adheres to the regulations set by the government.

With a user base of 125 million active monthly users in Indonesia, TikTok aims to leverage its large audience to generate substantial revenue from e-commerce activities. The company has been exploring potential partnerships with Indonesian e-commerce companies, including Tokopedia, and Blibli.

TikTok's parent company, ByteDance, has made significant investments in Southeast Asia, with Indonesia being the region's largest economy. The acquisition of an e-commerce permit will allow TikTok to expand its operations and further tap into the Indonesian market.

As of now, TikTok has not provided an official response to the deputy minister's remarks regarding the e-commerce permit. However, Reuters previously reported that TikTok was in discussions with various Indonesian e-commerce companies for potential partnerships.

  • TikTok is in the process of obtaining an e-commerce permit from the Indonesian government.

  • The ban on e-commerce transactions on social media platforms in Indonesia had a significant impact on TikTok.

  • TikTok aims to leverage its large user base in Indonesia to generate revenue from e-commerce activities.


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