Indonesia has officially banned business transactions on social media platforms. The policy was formulated to protect the local businesses from being undermined by foreign companies. TikTok has much to lose due to the new government policy as the country is its second biggest market after the US.
Blow To TikTok
The new policy was seen as the biggest blow to the video sharing giant. TikTok had already planned to invest billions of dollars in Southeast Asia’s largest economy. The country’s Trade Minister Zulkifli Hasan said the move will benefit Indonesia’s local businesses struggling to compete with predatory prices on social media platforms
TikTok Expressed Concern
In response, TikTok’s Indonesia’s spokesman said they don’t know how restricting Indonesian businesses will benefit the country. At least 6 million local businesses on TikTok are expected to be affected by the government’s decision.