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Pros and Cons of Removing TikTok Shop in Indonesia

11 Desember 2023   10:25 Diperbarui: 11 Desember 2023   10:28 100
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Birokrasi. Sumber ilustrasi: KOMPAS.com/GARRY LOTULUNG

The advancement of technology has had a significant impact on business sustainability. The establishment of business information systems such as E-commerce, one of which is currently popular, is TikTok Shop. The removal of TikTok Shop in Indonesia has sparked diverse debates with pros and cons. On the positive side, the closure of TikTok Shop serves as a rescue for traders and micro, small, and medium enterprises (UMKM). The regulation can also reduce the number of illegal imports contrary to laws and regulations. Additionally, this removal will lead to a reduction in predatory pricing, which has been detrimental to micro, small, and medium-sized enterprise (UMKM) sellers. The elimination of TikTok Shop also provides an opportunity to enhance consumer protection on e-commerce platforms by reducing cases of illegal product sales and fraud through decisive measures. However, on the flip side, the government's removal of TikTok Shop impacts Indonesia's economic conditions. Many sellers and workers associated with TikTok Shop lose their jobs and sources of income, potentially negatively affecting the country's economic growth. The removal also seems to impose restrictions on technological advancement, considering that TikTok Shop is an e-commerce platform formed through technological innovation. Even though TikTok Shop has been removed, conventional UMKM entrepreneurs need to leverage technology for innovation.Training in digital-era UMKM is crucial, and implementing import filtration, including tax additions, can address market price impacts, not only on TikTok Shop but also on other e-commerce platforms.

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