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Indonesia Bans Goods Transactions on Social Media Platforms

  • The Indonesian government has banned social media platforms from directly selling goods, citing concerns about misuse of personal data and the need to separate social media and e-commerce algorithms.
  • The ban primarily affects TikTok, as it currently allows direct purchases within the app, unlike platforms such as Facebook, Instagram, and WhatsApp. TikTok accounted for 5% of e-commerce transactions in Indonesia, making it a lucrative market for the social media giant.
  • Some sellers at physical stores in Indonesia have celebrated the ban, while buyers express disappointment. However, economists believe that banning social commerce is just a partial step to help small and medium-sized enterprises .
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WTVB broke the news in on Wednesday, September 27, 2023.
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