House Member Backs MSMEs Affected by TikTok Shop
Jakarta (ANTARA) - A member of Commission VII of the Indonesian House of Representatives (DPR RI), Andhika Satya Wasistho, has expressed full support for the actions taken by micro, small, and medium enterprise (MSME) owners who have fallen victim to alleged violations by TikTok Shop.
A number of MSME operators have reported to Commission VII regarding business balances or funds being withheld by TikTok Shop.
He emphasised that this issue has been ongoing since 2022 and is extremely serious. “The establishment of TikTok Shop seems to have been problematic from the start,” Andhika stated in Jakarta on Saturday.
Andhika noted that the alleged violations by TikTok Shop against MSME operators are estimated to have caused losses of around Rp3 trillion throughout Indonesia.
He stated that during the period when funds were seized between 2022 and 2023, TikTok Shop did not yet possess the necessary marketplace business permit from the Indonesian government.
MSME operators have become victims because their funds cannot be withdrawn, even though the platform has become active again after a period of closure.
“Personally, I am also encouraging Commission VII to protect our MSME entrepreneur friends,” he said.
Andhika proposed that Commission VII should not only hear from the Indonesian Advocates Association (Peradi), the Ministry of MSMEs, and MSME operators, but also summon representatives from TikTok and other e-commerce platforms.
He remarked that this issue could be resolved if all involved parties are present. “If this problem remains unresolved, I will personally push for Commission VII to establish a Special Working Committee (Panja),” he added.
Regarding this phenomenon, he suggested that TikTok Shop is suspected of violating Law Number 8 of 1999 on Consumer Protection, specifically the principles of information transparency and fair treatment, as well as Government Regulation Number 71 of 2019 concerning the implementation of electronic systems and transactions.
Consequently, he hopes that the withheld MSME funds can be returned immediately and that similar practices do not recur in the future.