Indonesia has enforced a fresh regulation prohibiting the exchange of goods on social media platforms.
The reason is to regulate direct sales on major social media platforms that are perceived to harm small businesses.
The call for such a regulation has grown due to cheaper product sales on platforms like TikTok Shop.
Trade Minister Zulkifli Hasan announced the regulation’s enforcement in Jakarta, the country’s capital.
Social commerce platforms have one week to comply with the new rule.
The regulation restricts social media firms from conducting direct transactions but allows them to promote products.
The regulation did not cover direct transactions through social media platforms before.
TikTok has faced scrutiny in the United States and other countries over data security and ties to Beijing.
Indonesia is the first country in the region to take action against TikTok’s social media commerce.
The ban may require social media firms to obtain separate approval for their e-commerce operations, impacting local sellers and online markets.
