Tomorrow, October 4, 2023, according to the Indonesian government, TikTok Shop will be shuttered in Indonesia.
This decision comes after the government mandated TikTok Shop to obtain an electronic commerce license. Despite being provided a seven-day window to apply for the license, TikTok Shop did not comply.
The closure might impact small businesses that utilized TikTok Shop for product marketing. The Indonesian government’s move aims to foster a compliant and positive electronic trading environment, aligning with national standards and halal regulations.
Are there any other e-commerce platforms available in Indonesia?
Yes, numerous e-commerce platforms are accessible in Indonesia. A report from McKinsey&Company Indonesia says that Indonesia’s e-commerce business is the biggest in Southeast Asia and is expected to reach $52.93 billion USD in 2023. Here are some of Indonesia’s leading e-commerce platforms:
- Shopee dominates the Indonesian e-commerce market despite its youth, with a market capitalization of $42 billion USD 2. It is well-known for its “Gratis Ongkir Rp 0” (Free Shipping Rp 0) policy, which allows users to experience free shipping without a minimum purchase.
- Tokopedia: Founded in 2009, Tokopedia is an Indonesian unicorn that provides a vast array of services, including online retail, digital payments, hotel bookings, movie and event ticketing, subscription plans, investment products, and a train and flight ticket sales portal.
- Bukalapak is an Indonesian e-commerce company that provides a vast selection of products, including clothing, electronics, and household appliances.
- Lazada is an online shopping platform that offers a vast selection of products, including electronics, apparel, household appliances, and groceries.
- Blibli is an online marketplace that offers a variety of products, including fashion, electronics, and household appliances.
How many people use TikTok in Indonesia?
In 2022, Indonesia recorded 99.1 million active TikTok users, ranking second globally after the United States. Notably, a significant portion of these users, approximately 50 million, falls within the age bracket of 18 to 24 years.
