Indonesia has cracked down on social media-based e-commerce, banning monetary transactions through social media.
Based on CNBC, Indonesia’s ministry of commerce introduced the coverage:
“One of many issues that’s regulated is that the federal government solely permits social media for use to facilitate promotions, not for transactions,” the ministry mentioned.
Officers mentioned the transfer — together with stopping social media corporations from performing as e-commerce platforms — was essential to guard consumer knowledge.
“The connection [between social media and e-commerce] have to be separated in order that the algorithm will not be all managed” thus stopping “using private knowledge” by companies. — Minister of Commerce Zulkifli Hasan
Whereas the coverage impacts all social media, as CNBC factors out, it’s an particularly massive blow to TikTok, as the corporate has been working to increase its e-commerce enterprise.