TikTok Shop Predatory Pricing Concerns in Indonesia: Experts Call for Regulation Adjustment

TikTok Shop Trending on X, Warganet: FYP contains all advertising for sale. (Liputan6.com/ Yuslianson)

Celios Digital Economy Director Nailul Huda highlighted the policy issue predatory pricing and sales of imported goods which seem to have left a gap after the return of the TikTok Shop to Indonesia.

Related predatory pricingNailul doesn’t want TikTok Shop with Tokopedia and the platform manager e-commerce Others repeat the mistake of selling many products below price which is detrimental to MSME traders offline.

“From another regulatory perspective, there needs to be regulation regarding avoidance predatory pricing. So traders offline can also be protected,” said Nailul Huda to Liputan6.comWednesday (13/12/2023).

Nailul also admitted that he was worried about regulations regarding the marking of imported products by those involved in Trade Through Electronic Systems (PMSE).

According to him, regulations that are too thick will make regulators confused about the platform’s position.

“Don’t let the position of TikTok feat Tokopedia become problematic in the future. There needs to be adjustments to regulations, especially regarding the type of licensing,” he added.

“Regarding imports, I think there must be adjustments in import restrictions by adding tagging products on all PMSE platforms, not limited to TikTok,” he said.

Furthermore, Nailul sees that the return of TikTok Shop will bring back the experience of playing social media as well as shopping. Tokopedia is said to be able to take advantage of live shopping on TikTok to install its green basket. So it can be transacted using the Tokopedia system which already has an e-licence-commerce.

“For Tokopedia sellers, they can take advantage of the features live TikTok for trading and integrated with Tokopedia features. “Both will benefit each other from the ecosystem side of each platform,” he explained.

The same thing was expressed by economist and Executive Director of the Institute for Development of Economics and Finance (INDEF), Tauhid Ahmad.

He has concerns that the return of TikTok Shop has the potential to repeat the practice predatory pricing.

“I think I will still have a chance predatory pricing. Because if the policy exists it should coincide with the data submitted by the Ministry of Trade. “Because the standards don’t yet exist,” said Tauhid to Liputan6.comWednesday (13/12/2023).

The standard price in question is the price reference for products that will be sold later. The Ministry of Trade has indeed issued Minister of Trade Regulation (Permendag) Number 31 of 2023 concerning Business Licensing, Advertising, Guidance and Supervision of Business Actors in Trading Through Electronic Systems, which prohibits TikTok Shop as a social commerce seller from selling in Indonesia.

However, Tauhid observed that the regulation does not yet include rules regarding item codes or price references that are indicated to be in practice predatory pricing.

“There is already a Minister of Trade Regulation, but there must be a detailed attachment. If there isn’t one, then an opportunity will open up, which is predatory pricing, where is the basis for the price provisions,” he stressed.

“If there are no standards, they will be able to do that. There are no regulations mentioned yet predatory pricing which one,” he added.

2023-12-13 17:00:00
#HEADLINE #TikTok #Shop #Returns #Operations #Indonesia #Committed #Supporting #MSMEs