Big Tech Trio TikTok, YouTube, and Meta Seek E-Commerce Licenses in Indonesia

Big Tech Trio TikTok, YouTube, and Meta Seek E-Commerce Licenses in Indonesia

After the issue of the return of TikTok Shop in Indonesia intensified, it turns out that there are other platforms that are rumored to be applying for an e-commerce business license in Indonesia.

According to a report from Reuters, there is consideration for TikTok and YouTube to join Meta in an effort to apply for an e-commerce license in Indonesia. This is in response to the Indonesian government's ban on online shopping on social media platforms.

Indonesia, with a population of more than 270 million, generated about $52 billion from e-commerce transactions last year, according to data from consulting firm Momentum Works. This is a major blow to TikTok, which in June pledged to invest billions of dollars in Southeast Asia, particularly Indonesia with 125 million users, to build its TikTok Shop e-commerce service.
TikTok, which is owned by Chinese technology company Bytedance, is exploring options to apply for an e-commerce license in Indonesia. TikTok is also exploring potential collaborations with local e-commerce players, including Tokopedia, and plans to launch a standalone TikTok Shop app in Indonesia. 

Meanwhile, YouTube has launched a shopping service initiative in the United States to allow creators to promote products and brands on its platform. However, a company spokesperson declined to comment on the development.

Meanwhile, Meta Platforms, which owns Facebook and Instagram, recently applied for an e-commerce license that will allow the promotion of goods on its platforms, although no direct e-commerce transactions will take place on them. Director General of Domestic Trade, Isy Karim, stated that this license will allow sellers to advertise and conduct market research, but will not include e-commerce transactions within the application.

Isy also mentioned that Meta is applying for similar licenses for Facebook, WhatsApp and Instagram apps. However, it should be noted that at this time, YouTube and TikTok have not approached the government to apply for similar licenses. Also, if TikTok decides to apply for an e-commerce license, it is expected to be a unit of a domestic company.

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