Indonesia has banned goods transactions on social media platforms to rein in direct sales on major platforms which are said to harm millions of small businesses, according to Trade Minister Zulkifli Hasan.

Indonesian sellers livestream on TikTok. (Photo: AFP/VNA)

Indonesian authorities recently have called for a regulation governing social media and e-commerce, with offline sellers seeing their livelihoods threatened by the sale of cheaper products on TikTok Shop and other platforms.

Speaking at a press conference on September 27, Minister Zulkifli Hasan said that the regulation started taking effect a day before and that social commerce platforms will have a week to comply with the new rule.

Social commerce can place ads like TV, but it mustn't be transactional. They can't open shop, can't directly sell, the minister said.

Laws in the country did not cover direct transactions through social media platforms such as TikTok, Facebook or Instagram before the new regulation.

Source: VNA