Short video app TikTok is in the process of obtaining an e-commerce permit from Indonesia’s government, state news agency Antara reported, citing the deputy trade minister.
In September, Indonesia banned e-commerce transactions on social media, a major blow for TikTok, which had pledged to invest billions of dollars in Southeast Asia, including Indonesia, the region’s biggest economy.
“Before, they (TikTok) were not compliant, they didn’t have the permit. Now they are taking care of it,” deputy trade minister Jerry Sambuaga was quoted saying by Antara on Tuesday.
He said a partnership with a local firm could be done providing it was in accordance with regulations.
TikTok, owned by China’s ByteDance, has 125 million active monthly users in Indonesia, a country of more than 270 million people. It has been looking to translate the large user base into a major e-commerce revenue source.
Earlier, Cooperatives and Small and Medium Enterprises Minister Teten Masduki remarked that TikTok had established coordination with three e-commerce platforms in Indonesia.
TikTok has been communicating with Tokopedia, Bukalapak, and an e-commerce platform of CT Corp, he stated, adding that the purpose of the communication is still unknown.
“I received this information from the e-commerce platforms, not TikTok,” Masduki stated in Jakarta on Thursday (November 23).
Masduki then said that he believes it is just a matter of time before TikTok resumes its TikTok Shop feature in Indonesia.
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