Jakarta –
DPR Commission VI member Amin AK highlighted a new threat to MSMEs in the e-commerce sector. This is Project S, which was launched by the social media application TikTok. According to him, this social commerce project can kill MSMEs in Indonesia.
According to him, this project can take advantage of the large Indonesian market to benefit the sale of MSME products from China, which is the country of origin of TikTok’s parent company.
“While MSMEs have not been able to compete, the MSME sector has received challenges and threats with the launch of a social commerce project or Project S by the social media platform TikTok which is also called the Trendy Bit feature, this program takes advantage of the large Indonesian market but prioritizes the sale of MSME products from China,” said Amin at the DPR Plenary Meeting, Thursday (13/7/2023).
He revealed that through this project, TikTok will analyze consumer behavior in Indonesia, especially regarding the purchase of goods that are much needed through data obtained on social media. Then, the information will be distributed to MSME producers in China.
After that, Chinese companies will produce goods that are said to be in demand in Indonesia, then promote them at low prices and can even be purchased on social media TikTok.
“The trick, TikTok analyzes trends in Indonesian consumer behavior and then asks Chinese MSMEs to produce goods that are in demand in Indonesia and their products are marketed through Project S with big promotions and low prices,” explained Amin.
According to Amin, the problem with trading in the realm of social media is an empty space of regulation. This can make TikTok act arbitrarily which in the end gives an unequal business battle for local MSMEs.
“The problem is a market battle in an empty regulatory space, in an unbalanced situation and not profitable for MSMEs. E-commerce regulations are difficult to apply to this project because it is considered social media, on the other hand the ITE Law is also difficult for this project because it is an e-commerce feature, ” said Amin.
Amin also requested that the leadership of the DPR urge the government to pay attention to this and take concrete steps to overcome the problems that are currently happening.
“We ask the leadership of the DPR RI to urge the government to pay serious attention and real action on this issue. The existence of MSMEs must be strengthened so that they become masters in their own country. It takes the government’s seriousness so that MSMEs are able to access the e-commerce market and at the same time be able to increase marketing technology innovations that are increasingly heavy due to the invasion of imported products,” explained Amin.
Previously, Deputy Chairman of Commission VI of the DPR RI, Sarmuji, stated that his party would summon the Ministry of Cooperatives and TikTok regarding Project S.
“We could call on the management of TikTok to protect our MSMEs. But what we first called was the Ministry of Cooperatives and MSMEs to get an explanation of what to do to anticipate ‘Project S TikTok’ or similar threats,” said Sarmuji when asked for confirmation, Wednesday ( 12/7/2023) yesterday.
Previously, the Minister of Cooperatives and MSMEs, Teten Masduki, had also spoken about the threat from the S TikTok project to domestic MSMEs. He said the threat was in the form of making it easier for foreign products to enter Indonesia so that local MSME products were less competitive.
Project S TikTok, according to him, must be watched out for. He said TikTok combines social media with e-commerce, so it can easily read user habits and recommend products according to what users want.
“Then I see TikTok projects, for example in England, we need to be careful. Because this is really, TikTok combines social media with e-commerce,” said Teten after attending an anti-corruption education at the KPK Building, South Jakarta, Tuesday (11 /7/2023) ago.
He said TikTok could also be a source of information for MSMEs abroad who wish to market their products in Indonesia. He said MSMEs from other countries would find it easier to find out what Indonesians needed.
“Usually people shopping in e-commerce are usually influenced by the debate on social media. Then they buy it on e-commerce. Now, if the algorithm is sophisticated, this algorithm can direct and know consumer behavior in our digital market. so that he can provide information to MSME producers in China who want to enter Indonesia, so this is a threat, because it is a threat to MSMEs. We are already free trade, but I think every country also needs to protect MSMEs, so they don’t lose out in competition,” said Teten .
He suggested the Ministry of Trade change the regulations so that domestic MSMEs could be protected. He hopes that direct sales via e-commerce across countries can be limited. The change in the rules is in Permendag Number 50 of 2020.
“So that’s why we are proposing to the Minister of Trade, that is a change in Permendag number 50 (2020), because it is no longer relevant. What we are proposing is two in essence, one, we want to stop online retail through cross-border e-commerce to directly selling goods from here. It’s not fair, because for example MSME products, if you want to sell them, they have to get BPOM permits for distribution permits, halal certification and so on, pay taxes here and so on,” explained Teten.
“Second, to really protect MSMEs, it must be admitted that the backbone of the national economy, 97% of employment is provided by MSMEs,” he continued.
See also the video ‘WhatsApp Business Releases New Features to Develop MSMEs’:
(hal/rrd)
2023-07-13 06:02:35
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