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TikTok confirmed that it will not launch cross-border e-commerce business in Indonesia to support the development of local small and micro enterprises.

Shulou Source: shulou.com Published: 2023-11-24 18:22:04 10月03日 Update

CTOnews.com, July 27 (Reuters)-TikTok said today that it will not launch a cross-border e-commerce business in Indonesia to deliver on its promise to support local micro, small and medium-sized enterprises.

▲ Touyuan PixabayCTOnews.com has previously reported that TikTok has been developing a plan to help Chinese merchants sell goods around the world, which has been piloted in the UK and is scheduled to be officially launched to US consumers next month.

Teten Masduki, Indonesia's minister of small and medium-sized enterprises and cooperatives, told local media that he had met with the head of TikTok and expressed concern that the launch of such a program in the country might hurt small businesses. He also stressed that TikTok had promised not to do so.

The Indonesian government's position makes it the first country to publicly oppose TikTok's plan, and TikTok is trying to replicate the success of shopping platforms such as Shein and pinduoduo's Temu in Europe and the US.

Anggini Setiawan, head of TikTok's Indonesian public relations, said the company had no intention of launching such a platform in Indonesia: "as a responsible company, we have made a conscious and thoughtful decision not to open cross-border business here. This is our commitment to support local micro, small and medium-sized enterprises in Indonesia."

Setiawan added that the current local TikTok Shop model "empowers and benefits local sellers" and TikTok will continue to do so. The model, which TikTok calls "full service", is designed to complement TikTok's existing e-commerce capabilities and help local merchants sell products to local buyers on TikTok applications.

TikTok has built up a large user base in Indonesia. The company says its app has 325 million monthly active users in Southeast Asia, 125 million of which are in Indonesia. In addition, there are 2 million small businesses on TikTok Shop in Indonesia.