TikTok halts e-commerce service in Indonesia following ban
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Last week, the Indonesian ministry of trade set a one-week deadline for TikTok to become a standalone app without any e-commerce features, or face closure.

In a statement on Tuesday, TikTok stated that it is committed to remaining compliant with local laws and regulations.

Therefore, we will no longer facilitate e-commerce transactions in TikTok Shop Indonesia by 17:00 GMT+7, October 4, and we will continue to work with the relevant authorities.

Earlier this month, President Joko Widodo called for social media regulations. By flooding the market with foreign imports, such platforms have contributed to a decline in sales for domestic businesses. Facebook and TikTok were banned last week by the Indonesian government from conducting e-commerce transactions.

TikTok’s Southeast Asian ambitions may be harmed by the new regulation. According to CEO Shou Zi Chew, the app will invest billions of dollars into the region in order to diversify its business globally amid escalating U.S. pressure.

With 125 million users after the U.S., Indonesia is TikTok’s largest Southeast Asian market and second-largest global market. DBS Bank’s Sachin Mittal, head of telecom, media and technology research, previously said TikTok “may still be difficult to operate as a standalone app.”

Since most purchases on TikTok are impulse purchases, logging into a separate app might result in a sharp drop-off rate.