Communications and Digital Minister Fahmi Fadzil announced that the government will investigate the Indonesian government’s action of banning e-commerce transactions on TikTok.
Fahmi disclosed that he had received complaints from the public expressing concerns about this action. Simultaneously, several large stores had raised issues related to price competition for products sold on the platform, according to Bernama.
Fahmi emphasised the importance of this inquiry, stating that he will request the Communications and Multimedia Commission (MCMC) and the ministry to scrutinise the grounds behind the Indonesian government’s decision.
He also added that TikTok needs to provide an explanation since one of the reasons for the ban in Indonesia is predatory pricing, which poses a threat to local entrepreneurs there.
Furthermore, Fahmi stressed the need for TikTok to clarify its stance on personal data protection, a concern expressed by platform users.
He highlighted that social media platforms analyse user behaviour extensively, encompassing preferences, sharing habits, purchases, and content consumption.
Therefore, issues related to consumerism and personal data protection require careful examination by MCMC.
Fahmi stressed that this discussion was crucial, as the ministry had received complaints from media organisations regarding the impact of social media on their operations.
He noted that many companies have shifted their advertising budgets from traditional media to social media platforms, affecting the traditional media landscape.
Recently, Indonesia’s Trade Minister Zulkifli Hasan had previously explained that the ban aimed to safeguard personal data from being used for business interests and promote a fair, healthy, and beneficial electronic commerce ecosystem.
