Refuse Tik Tok Shop Closure

TikTok with its TikTok Shop is arguably at the top of the highest social commerce in this digital
era. From TikTok, many content creators with various backgrounds were born who raised various
issues, ranging from social issues, daily life, to viral issues.TikTok Shop also brings its own
advantages, especially for many MSMEs.Tik Tok Shop makes consumers have more choices of types
of goods, quality, price, to promos that increasingly make prices more tempting.Related to this, the
Indonesian government recently finally officially banned Tik Tok Shop on Wednesday
(4/10/2023).Losing access to a wide market for MSMEs who sold through TikTok Shop previously
benefited greatly because they could reach a wide market through the For your Page (FYP)
feature.The ban on TikTok Shop will certainly make MSME actors lose this wide market reach and
have to start a marketing strategy and look for new market reach again from scratch on other sales
platforms.With the closure of TikTok Shop, what will be the impact on MSMEs and the development
of Indonesia's digital economy in the future? In this essay, we will discuss the impact of the TikTok
Shop ban which will inhibit the growth of MSMEs and will make MSME actors who previously
relied heavily on features to sell will have difficulty finding alternatives to other effective e-commerce
platforms.

The Tik Tok Shop store will make MSME customers who previously really needed that
feature for sales will be successful in finding other effective e-commerce platform
alternatives. Because, they will certainly be harmed in terms of the market, the level of
product sales will certainly decrease when moving to another sales platform.
MSME actors who sell through TikTok Shop previously benefited greatly because they
could reach a wide market through the For your Page (FYP) feature. The ban on TikTok Shop
will certainly make MSME actors lose this wide market reach and have to start a marketing
strategy and look for new market reach again from scratch on other sales platforms. This
certainly has new problems, because other platforms clearly have differences, different
problems, different prospects, and so on. The market share has also changed and there are
not necessarily the same features to pamper MSME actors, such as FYP.
One of the strong reasons for supporting the TikTok Shop ban is the alleged predatory
pricing strategy that offers goods at very low prices. This of course can harm other MSME
businesses that cannot compete with prices on TikTok Shop, especially those who still sell
conventionally. Another reason why supporting the ban on TikTok Shop in Indonesia is that
there are concerns that apps like TikTok collect personal data and cannot guarantee its
security. This lack of data security can affect consumer confidence and hamper business
growth on the platform itself

In America, there is a Texas agreement (Project Texas) that requires TikTok to follow
American policies, such as building servers in America, management workers must be
American citizens, and supervisors must also be Americans
 TikTok Shop has helped many MSMEs increase their visibility and sales. Not only getting
new customers, many MSME actors also get excess profits from this TikTok Shop. When
TikTok Shop has been banned, it will certainly cause new problems. Many MSME players will
lose markets, purchasing power (increasingly) decreases, and economic growth is hampered.
Arrangements can help ensure that businesses on those platforms operate ethically and
comply with applicable laws. Meanwhile, good supervision and balanced regulation can be
the key to ensuring the sustainable development of the digital economy and supporting the
growth of MSMEs in Indonesia.Overall, in the context of Indonesia's digital economy, TikTok
Shop has indeed become one of the important players in the rapidly growing e-commerce
industry. Hopefully, in the future, policies will be made that will benefit the platform and all
MSME actors in Indonesia.