JAKARTA: TikTok Shop is officially a thing of history in Indonesia after changing its name to Shop Tokopedia.
This change in form occurred after TikTok completed the migration of the TikTok Shop electronic system to Tokopedia as of March 27.
President of Tokopedia, Melissa Siska Juminto, quoted by Kompas.com, Thursday (4 April), said that the migration of TikTok Shop to Tokopedia had been completed in accordance with Minister of Trade Regulation (Permendag) 31 of 2023.
Melissa explained that all payment, transaction and user and merchant management activities previously carried out by TikTok have now been transferred to the PT Tokopedia domain and are fully managed by Tokopedia.
This migration process is related to the three main points emphasized in Minister of Trade Regulation 31/2023, namely payment processes, user data and merchant operations.
To avoid confusion, TikTok Shop displays a banner on the front of the Tokopedia Shop so that users know that its Shop services are now managed by Tokopedia.
The Tokopedia and TikTok Shop Indonesia businesses officially merged under PT Tokopedia following the acquisition of Tokopedia by TikTok with an investment value of more than 1.5 billion US dollars or around Rp. 23.4 trillion on January 31, 2024.
The migration of the TikTok Shop electronic system to Tokopedia was carried out to comply with Minister of Trade Regulation 31 concerning Business Licensing, Advertising, Guidance and Supervision of Business Actors in Trading via Electronic Systems.
Minister of Trade Regulation 31 regulates that social commerce platforms such as TikTok, Instagram and Facebook are only permitted to facilitate the promotion of goods and services sold by traders.
This platform is prohibited from carrying out direct buying and selling transactions.
The TikTok Shop e-commerce business had to close its activities which previously allowed users to purchase and pay for goods or services directly within the TikTok application.
