The popular social networking application, TikTok, has recently suspended its online buying operation in Indonesia.

TikTok, a popular social media application, has decided to temporarily halt its online buying operation in Indonesia in order to adhere to the recently implemented regulations in the largest economy of Southeast Asia.

The implementation of the action will commence at 17:00 local time in Jakarta, which corresponds to 10:00 Greenwich Mean Time (GMT).

According to the government of the country, the restrictions have been implemented with the objective of safeguarding the interests of local physical and online stores.

In 2021, Indonesia took the initiative to implement the e-commerce feature of the app, thereby becoming a prominent market for TikTok Shop.

Indonesia has unveiled regulatory measures mandating the separation of TikTok’s commerce functionality from its widely-used video sharing platform within the nation.

In the official statement, Indonesia’s trade minister Zulkifli Hasan declared that e-commerce should not be equated with social media. The subject is divided into distinct parts.

Additionally, he issued an ultimatum to social media platforms, stipulating that they must adhere to the newly implemented regulations within a week, or face the potential revocation of their operating license within the nation.

The declaration was made subsequent to the statement by President Joko Widodo of Indonesia, wherein he emphasized the necessity of exercising caution in relation to the field of electronic commerce. The presence of regulations can provide positive outcomes, while the absence of restrictions might lead to negative consequences.

In a statement issued on Tuesday, TikTok expressed its primary focus on maintaining adherence to local laws and regulations.

The statement further asserts that the facilitation of e-commerce transactions in TikTok Shop Indonesia would cease.

The growth of e-commerce in Indonesia has experienced a significant surge in recent years. According to the central bank of Indonesia, the projected growth of e-commerce sales from 2018 to the upcoming year is expected to exceed six times its initial value, reaching a total of 689 trillion Indonesian rupiah ($44 billion; £36.5 billion).

TikTok Shop has had significant market expansion since its inception two years ago inside Indonesia’s online retail sector, which is mostly controlled by prominent platforms like Tokopedia, Shopee, and Lazada.

The nation, comprising a population above 278 million individuals, accommodates a staggering 125 million users of the popular social media platform, TikTok. This encompasses a total of six million individuals engaged in selling activities, along with a significant number of producers who utilize TikTok Shop as a means to generate income by endorsing various products.

During the month of June, the chief executive officer of the company, Shou Zi Chew, embarked on a tour to Indonesia, wherein he made a commitment to allocate a substantial amount of capital, amounting to billions of dollars, towards investments in the region within the next three to five years.

The proliferation of e-commerce platforms has significantly influenced proprietors of brick-and-mortar establishments, exemplified by Sukmamalingga, an individual who has operated a physical business specializing in Muslim attire, particularly kaftans, within the Tanah Abang Market in Jakarta for a duration of nine years.

In an interview with BBC News Indonesia, the individual expressed that their clients from various locations in Indonesia had ceased their shopping activities, despite the frequent dissemination of photographs showcasing new clothing models.

According to official government data, the total number of micro, small, and medium firms (MSMEs) in Indonesia exceeds 64 million. These MSMEs play a significant role in the country’s economy, contributing to about two-thirds of its overall economic output.

The implementation of the new restrictions poses an additional obstacle for TikTok, since the platform has faced examination in the United States, European Union, and the United Kingdom. Notably, the UK Parliament has prohibited the app from its network because to apprehensions regarding security.