Social Commerce Banned from Buying-Selling, Only for Advertising

Jakarta – The Indonesian President Joko Widodo (Jokowi) has approved that social commerce is only allowed to facilitate the promotion of goods or services (advertising), according to Trade Minister Zulkifli Hasan. 

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"In a limited meeting held by the President regarding the regulation of electronic commerce, especially social commerce, it has been approved," the Trade Minister said at the Presidential Complex in Jakarta on Monday. 

According to the Minister, a revision of Minister of Trade Regulation (Permendag) No. 50/2020 on the provisions of business licensing, advertising, guidance, and supervision of business actors in trading through electronic systems has been agreed upon.

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"It has been agreed that we will sign the revision of Permendag 50/2020. This has been discussed for months," the Minister informed. 

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Menteri Perdagangan RI Zulkifli Hasan

Photo :

• Dok. Istimewa

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Minister Hasan revealed the results of the limited meeting, first, social commerce can only facilitate the promotion of goods or services, so it cannot be a direct transaction or direct payment.

"(Social Commerce) can only be promoted, like on television. You can advertise, but you can't receive money. So it's a kind of digital platform. Its job is only to advertise," He emphasized. 

Minister Hasan said that the regulation will regulate the sale of goods from abroad and also regulate minimum purchase transactions of imported goods. 

"For example, Indonesia has a lot of batik so there is no need to import," the Minister conveyed. 

"Later we will regulate which products from abroad are positive, and which are negative. For example, we want batik from foreign products, why don't we have it," He added. 

The Minister also said, "Imported goods sold in e-commerce must be treated the same as domestic products. For example, if it is food, there must be a halal certificate and a permit from the POM Agency." 

"The position of goods from outside must be treated the same as domestic goods. For food, there is a halal certificate. Beauty must have a POM Agency. For electronics, there must be standards. The same treatment as those in the country or offline," Minister Hasan continued. 

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As information, Social commerce is the process of buying and selling products and services directly through social media, such as the currently much-talked-about; TikTok Shop and others.