JAKARTA, October 26 – TikTok and YouTube are considering joining Meta in applying for an e-commerce license in Indonesia, after Southeast Asia’s largest economy banned online shopping on social media platforms. , said a person familiar with the discussions.
A month ago, Indonesia’s Ministry of Trade banned e-commerce on social media, saying it was to protect small and medium-sized offline retailers and markets, and to ensure the protection of users’ data.
Indonesia, with a population of more than 270 million people, generated about $52 billion in e-commerce last year, according to data from consultancy Momentum Works.
The law was particularly damaging to TikTok. TikTok pledged in June to invest billions of dollars in Southeast Asia, particularly Indonesia, where it has a user base of 125 million, in a major push to build out its e-commerce service TikTok Shop.
The app, owned by Chinese tech giant ByteDance, plans to apply for an e-commerce license and is exploring the best path forward, three people familiar with the matter told Reuters.
TikTok is building a standalone TikTok Shop app for Indonesia while holding talks about potential partnerships with local e-commerce companies such as GoTo’s Tokopedia, according to people familiar with the matter.
TikTok Shops was delivering about 3 million packages a day in Indonesia before it ceased operations in the country this month, two people familiar with the matter said.
TikTok said it could neither confirm nor deny that it was considering applying for a license. Tokopedia did not respond to requests for comment.
Alphabet Inc.’s YouTube Inc. also plans to apply for an e-commerce license, two people familiar with the matter said, although the type of permit planned was not disclosed. YouTube has introduced a shopping service in the US for creators to promote products and brands on the platform.
A company spokesperson declined to comment.
There were no previous reports about TikTok and YouTube’s plans to apply for an e-commerce license in Indonesia.
Meta Platforms, the owner of Facebook and Instagram, announced this month that it will be able to promote products on its platforms, but will not allow direct e-commerce, according to Indonesia’s Trade Ministry’s Domestic Trade Director Isi Karim. The company has applied for an e-commerce license.
Icy said the permission would allow vendors to promote their products and conduct market research, but would not allow in-app transactions, adding that Meta was seeking permission for Facebook, WhatsApp and Instagram apps. Ta.
Mehta did not respond to requests for comment.
Icy said YouTube and TikTok have not contacted authorities about the application. If TikTok were to apply, it would have to be the company’s domestic arm, he said.
Reporting by Stanley Widianto and Fanny Potkin.Editing: William Mallard
Our standards: Thomson Reuters Trust Principles.