HomeeCommerce NewsTikTok, Meta and YouTube are looking to get Indonesia's e-commerce license

TikTok, Meta and YouTube are looking to get Indonesia’s e-commerce license

You must be aware that all of a sudden, TikTok’s best business was banned in Indonesia as the country introduced a new law which states that e-commerce companies are only allowed to sell e-commerce products because of the fact that social media platforms like TikTok and Facebook among others were also selling e-commerce products due to their huge reach. Since then, we know that TikTok’s Shop has been banned in the country and it is clear that they will re-open only as a separate platform with a license to operate as well. Now, a new report reveals that companies like TikTok, Meta and even YouTube are looking to get an e-commerce license in Indonesia. On being asked about the same, “TikTok said it could neither confirm nor deny it was considering seeking a license” as reported by Reuters.

Without naming the sources, the report added that Alphabet’s YouTube is also looking to get a license but the type of license is not known yet. We can also tell you that Meta has applied to get a license in Indonesia. The permit would enable vendors to advertise goods and do market surveys but no in-app transactions adding that Meta is seeking the permit for its Facebook, WhatsApp, and Instagram apps. TikTok needs to be a domestic unit of the company to apply for a license so it will have to comply with that first. TikTok is also holding talks for potential partnerships with local e-commerce players, including GoTo’s Tokopedia while building a standalone TikTok Shop app for Indonesia, the people said as reported by Reuters.

One of the main reasons for the ban, as stated by the Indonesian government, was that companies like TikTok were importing products from outside the country and selling them in Indonesia at a much cheaper rate while killing the competition and not letting the local players grow. To put that into context, we can add some numbers for you. It is reported that TikTok’s Shop was so popular that it was delivering 3 million orders per day in Indonesia at its peak among a population of 270 million.

Alf Alferez
Alf Alferez
Dedicated writer with a strong track record of developing customer loyalty and managing general office operations. Enjoy being a part of a company where my skills and creative ideas will benefit the overall productivity of the organization. I have a strong desire to work in helping make the world a better place. Please reach out to me on alf@ecommercenext.org

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