Expert: TikTok Shop closure has positive impact on e-commerce ecosystem

Jember, East Java (ANTARA) – Muhammadiyah University (Unmuh) Jember economic expert Yohanes Gunawan Wibowo said that the temporary closure of the TikTok Shop has had a positive impact on the e-commerce ecosystem, which is reflected in the increase in Bukalapak and Tokopedia share prices.

“However, this may only be temporary because the digital platform is likely to return in a different way,” he said in a written statement received in Jember Regency, East Java, Saturday.

The government officially closed the TikTok Shop on Wednesday (4/10) at 17.00 WIB, referring to government regulations, Minister of Trade Regulation (Permendag) Number 31 of 2023.

Minister of Trade Regulation Number 50 of 2020 and Minister of Trade Regulation Number 31 of 2023 led to the official closure of the TikTok Shop on the grounds that social commerce had become a place for promotions and transactions were prohibited.

“The closure has given rise to more intense competition in the e-commerce industry and increased sales in e-commerce Facebook Ads and Instagram Ads,” he said.

The lecturer at the Unmuh Jember Management Study Program said that the consequences of closing the TikTok Shop would affect business people who rely on it. They must improve their business capabilities both offline and online.

“Overall, TikTok Shop is a clear example of how adaptive management strategies can enable businesses to survive in a rapidly changing, disruptive era,” he said.

He considers that TikTok Shop combines entertainment with a shopping experience, thereby using big data analysis to present content that suits consumer preferences and displays products that suit their wishes. That creates a more effective impulse buying phenomenon.

“This shows that TikTok Shop is a serious threat to the e-commerce industry in Indonesia. TikTok Shop has implemented an almost perfect marketing strategy, creating more complex competition in the market,” he said.

TikTok has expressed its readiness to comply with government regulations, which may not change its long-term strategy. Even Tiktok has not yet sold its shares to the public, but that could change in the future.

“The government should not only make regulations, but also understand the opportunities that exist in the development of digital technology. A local platform like TikTok could be a positive step,” he said.

Yohanes said the importance of the government’s role in following developments in digital technology and changes in consumer behavior, and the government needs to support the creation of local platforms like TikTok and assist MSMEs in increasing digital literacy.

Reporter: Zumrotun Solichah
Editor: Edy M Yakub
Copyright © ANTARA 2023

By yowuj