ANALYSIS OF THE TIKTOKSHOP OPERATIONAL BAN BY THE INDONESIAN
GOVERNMENT
Arranged By:
Eldi Triyanda Fauzan (0055549722)
PUSAKA NUSANTARA 2 BEKASI HIGH SCHOOL
Academic Year 2023/2024
Jln. Sultan Hasanudin No.5A Mekarsari-Tambun Bekasi, Jawa Barat
Telp: (021)-88339770
VALIDITY SHEET
ENGLISH PORTFOLIO
“ANALYSIS OF THE TIKTOKSHOP OPERATIONAL BAN BY THE INDONESIAN
GOVERNMENT”
This portfolio was prepared and submitted as a final project to fulfill the request of the
English teacher, Kumala Sari, S.Pd. School year 2023/2024 Social Science Department of
Pusaka Nusantara 2 Bekasi High School.
By:
Eldi Triyanda Fauzan (0055549722)
Bekasi, January 17th 2024
Agree,
Subject Teachers Vice Principal of Curicullum
Kumala Sari, S.Pd Reni Kuniarsih, S.Si
Principal
Harti Nurbayanti, M.Pd
Portofolio Assessment
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FOREWORD
Praising and thanking the presence of Almighty God, who has graced and guided the grace
and guidance to enable the author to complete the portfolio assignment entitled " Analysis of
the Indonesian government's Tiktokshop operation ban. " on time.
This portfolio was created to fulfill an English class assignment. In addition, it aims to add
insight into social problems that occur in Indonesia. It discusses problems related to the
Tiktokshop application, as well as knowing the chronology and other useful purposes for
readers and author.
The author would like to thank Miss Kumala Sari as her English teacher. Thanks to all who
contributed to the completion of this portfolio. This work is far from perfect and the author is
aware of that. Therefore, suggestions and constructive criticism are expected to help perfect
this assignment.
Bekasi, 19th January 2024
Author
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TABLE OF CONTENT
VALIDITY SHEET................................................................................................................................ ii
FOREWORD ...................................................................................................................... iii
CHAPTER I INTRODUCTION........................................................................................... 1
1.1 Background of the portofolio .......................................................................................... 1
1.2 Problem Formulation ...................................................................................................... 2
1.3 Purpose of the paper ....................................................................................................... 2
CHAPTER II DISCUSSION THEORY ............................................................................... 3
2.1 History ........................................................................................................................... 3
2.2 Chronology .................................................................................................................... 4
CHAPTER III CLOSING..................................................................................................... 5
3.1 Conslision ...................................................................................................................... 5
3.2 Suggestion...................................................................................................................... 5
BIBILOGRAPHY ................................................................................................................ 6
ATTACHEMENT .................................................................................................................................. 7
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CHAPTER I INTRODUCTION
1.1 Background of the portofolio
The Tiktok application is a social media that has a very high user interest at this time. Tiktok is a
platform where various creators can create interesting short video content for the purpose of getting a
large audience and likes, and functions as a social media that contains entertainment, information, and
various objective benefits for various users of the application. However, currently the Tiktok application
has the latest feature, which is Tiktok for Businesses as the latest form of innovation from the previous
Tiktok innovation. The appearance of this feature, especially in the territory of Indonesia, has proven to
be very beneficial for business people and various consumers who feel helped by this application.
Tiktok for Business or known in Indonesian society as Tiktokshop, introduces the same online
shopping features as in general e-commerce platforms such as Tokopedia, Shoope, Lazada and other
similar applications. The advantage of Tiktokshop is that business people can do live streaming sales,
and include a basket of goods sold as a promotional medium, or sellers can show a variety of items sold
in the user profile column, so that consumers can see the online store of the seller. What, these
advantages are very beneficial for various business people, whose businesses have sales constraints,
with the global Internet such as the function of this application, and content creativity is also a very
useful promotional medium, because in this way it can quickly sell more than business people, the sales
rather than direct sales promotion media.
The use of Tiktokshop is very helpful for companies, businessmen and individuals. They can show
various self-creativity to the public. However, it is known that not all people or individuals are adept in
using internet technology such as social media. Especially for Indonesians, only a few percent of
individuals understand the use of social media or Internet technology, especially for people who are
vulnerable to age. And apparently these business people do not all understand and are proficient in using
technology, but still have obligations as a profession to make direct sales. This is an obstacle for business
people who are doing direct selling, because they don't understand the obstacles and they don't want to
try to keep up with the times, so it becomes a self-inhibiting and becomes a problem for the person.
The emergence of the Tiktokshop platform has disrupted the sales of businesses that do direct
marketing. One of them is a public shopping center in the Tanah Abang Jakarta area. Many sellers in
this place feel disturbed because the sales target is greatly reduced due to the emergence of this
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Tiktokshop. Previously, the emergence of e-commerce was protested by the merchants in the shopping
center, but it did not go too far because the emergence of technological innovations cannot be stopped.
One of these innovations is Tiktokshop, which brings a variety of advantages and creative ways for the
business people to promote the sales. Therefore, Tiktokshop has become a problem in Indonesian
society. Because with the existence or emergence of this platform, they think it is unfair. So it has caused
various parties related to this issue, including the Indonesian government.
1.2 Problem Formulation
The problem report regarding closing and reopening the TikTok Store may include the following
questions
1. What are the reasons or factors behind the closure of the TikTok store?
2. In Indonesia, how is the issue of the TikTok store developing?
3. What measures or changes have been in place since the closure?
4. Has there been any reaction or feedback from users or business partners regarding this closure?
5. Why did the Indonesian government close the TikTok store?
1.3 Purpose of the paper
1. To find out the purpose of the Tiktok shop.
2. As information about the problems that arise because of the Tiktok shop.
3. To understand the benefits of Tiktok shop for the community.
4. To find out the chronology of TikTok shop which was stopped.
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CHAPTER II DISCUSSION THEORY
2.1 History
Tiktok application is a video application in which users can create, edit, or add music to videos
according to the user's wishes. This application comes from China, which was released in early September
2021 by an entrepreneur named Zhang Yiming. This application has become famous in Indonesia in the
beginning of 2018, many people have been using Tiktok as an entertainment because it has features such
as adding unique filters or stickers to videos, adding music to videos, and many more additional features
in this application. With the development of the Tiktok application, Tiktok is again launching a trading
feature where users can do online buying and selling activities so that someone can benefit from this
feature.
The inauguration of this feature was on April 17, 2021. This feature is designed to make it easier for
producers, sellers, and content creators to provide a shopping experience that is safe, convenient, and
more affordable than other e-commerce sites. Like any other e-commerce, the Tiktok shop will offer high
quality products and promos that users can enjoy, such as discounts and free shipping. In addition,
because many people already know Tiktok Shop, the positive impact is that many people have been
helped by becoming one of those who sell at Tiktok Shop.
However, the negative impact that can be felt by the community is that many individuals are reluctant
to buy goods or products directly, this problem causes income inequality between online traders and
traders who are in stores. This problem becomes serious because over time the market becomes quiet
because people switch to online shopping.
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2.2 Chronology
Chronology of the closure of the TikTok shop Officially, the closure of the TikTok shop in Indonesia
was on Wednesday, October 4, 2023. The closure of the TikTok Shop is the result of the enactment of
the Minister of Trade Regulation (Permendag) No. 31 of 2023 on the licensing, advertising, guidance,
and supervision of business operators in the trade through electronic systems. On the basis of this
regulation, social commerce platforms such as TikTok, through the TikTok Shop service, are prohibited
from providing services related to trading transactions directly through their electronic systems. Social
commerce platforms are only allowed to facilitate promotional activities. Tanah Abang merchants asked
the government to also shut down Lazada and Shopee because their shops were still empty of visitors.
Sellers also said that compared to merchants on online platforms, offline merchants were inferior in
terms of price. According to the sellers, these high prices are due to the fact that offline merchants still
have to pay rent and the cost of employees.
Chronology of the re-launch of the TikTok Shop At the end of October, news broke about TikTok's
efforts to re-launch the TikTok Shop in Indonesia. In mid-November, in an effort to revive the TikTok
Shop, TikTok was said to be in talks with local marketplaces about a possible collaboration. Around the
beginning of December, TikTok is said to have reached an agreement with PT GoTo Gojek Tokopediav
(GoTo). On December 11, 2023, TikTok announced that it was officially in cooperation with GoTo
through the Tokopedia business to revive the TikTok shop. Also on December 11, 2023, TikTok
announced to sellers that they would have access to the seller center again to manage their goods. On
December 12, 2023, TikTok Shop is set to re-launch in Indonesia for an initial trial.
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CHAPTER III CLOSING
3.1 Conslision
It can be concluded that the development of technology is currently advancing. So, as an individual
person must follow and be proficient in using technology so as not to be left behind and feel difficult
on their own. Tiktokshop is a clear example of this technological advancement, where as online sales is
not only from a smartphone platform, but can do online promotions with live streaming not only rely
on advertising.
Especially from the incidence of problems that occur in Indonesia in connection with the offline
stores that only rely on direct promotional sales, it has proven to be less effective for the profits of the
business. Therefore, the option of learning and starting business from platforms like Tiktokshop or other
e-commerce is highly recommended.
3.2 Suggestion
The use of Tiktokshop for business people is highly recommended for the benefit of the business
itself. Not only Tiktokshop, but also other e-commerce must be tried and started to promote business
sales on the platform. As a way to promote the business, creativity to create interesting content must
also be in demand, so that it can fully compete with other businesses, and consumers can also be more
interested and achieve profits and goals.
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BIBILOGRAPHY
Jazeera, Al. (2023). Indonesia’s TikTok Shop ban reveals mixed feelings on e-commerce revolution.
Accessed at: https://www.aljazeera.com/amp/news/2023/10/23/indonesias-tiktok-shop-
banshows-mixed-feelings-on-e-commerce-revolution [19th January 2024, 8.30 GMT]
Sandi, Ferry. (2023). TikTok Shop Ditutup, Mendag Tegaskan Nasib Ecommerce Lain.
Accessed at: https://www.cnbcindonesia.com/tech/20231010162529-37-
479461/tiktokshop-ditutup-mendag-tegaskan-nasib-ecommerce-lain/amp [18th January
2024, 17.00 GMT]
Hasiana, Dovana. (2023) Aksi Pedagang Tanah Abang Desak Menkop UKM Hapus TikTok Shop.
Accessed at: https://www.bloombergtechnoz.com/detail-news/15782/aksi-pedagang-
tanahabang-desak-menkop-ukm-hapus-tiktok-shop [17th January 2024, 11.00 GMT]
BBC. (2023). TikTok Shop ditutup, pedagang dan affiliator kecewa.
Accessed at: https://www.bbc.com/indonesia/articles/c4n8032p80zo [19th January 2024,
14.00 GMT]
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ATTACHEMENT
