Indonesia bans e-commerce transactions on social media platforms

By Necva Tastan

ISTANBUL (AA) - Indonesia on Wednesday banned social media platforms from facilitating e-commerce transactions, national news agency Antara reported.

Now, e-commerce cannot become social media, Trade Minister Zulkifli Hasan told a press conference in the capital Jakarta.

He said social commerce platforms would have a week to comply with the new rules.

Hasan said the revision aims to foster a "positive electronic trading ecosystem," and the ministry will penalize, including permit revocation, in case of violations.

Indonesia is one of the world's biggest markets for TikTok Shop, and the new rules are said to be a big blow for the popular video-scrolling service.

Trade Minister's Regulation Number 31 of 2023 covers various aspects including the separation between social media and social commerce. The ministerial-level regulation is an amendment to a trade regulation issued in 2020.