House Member Backs MSMEs Affected by TikTok Shop

A member of Commission VII of the Indonesian House of Representatives (DPR RI), Andhika Satya Wasistho, has expressed full support for micro, small, and medium enterprise (MSME) operators who have become victims of alleged violations by TikTok Shop. A number of MSME operators have reported to Commission VII that their business proceeds or funds have been withheld by TikTok Shop. He stressed that this issue has been ongoing since 2022 and is extremely serious. “It seems TikTok Shop has been problematic from the very beginning,” Andhika said in Jakarta on Saturday. Andhika stated that the alleged violations by TikTok Shop against MSME operators are estimated to have caused losses reaching approximately Rp3 trillion across Indonesia. When the fund seizures occurred between 2022 and 2023, he noted, TikTok Shop did not yet possess a marketplace business licence from the Indonesian government. The MSME operators became victims because their funds could not be disbursed, even though the platform became active again after being temporarily shut down. “I personally also encourage Commission VII to protect our fellow MSME operators,” he said. Andhika also proposed that Commission VII not only hear from the Indonesian Advocates Association (Peradi), the Ministry of MSMEs, and the MSME operators themselves, but also summon TikTok and other e-commerce platforms. He stated that this issue can be resolved if all involved parties are present. “If this problem still cannot be resolved, I personally encourage Commission VII to establish a working committee (Panja),” he said. In light of this phenomenon, he believes TikTok Shop is suspected of violating Law Number 8 of 1999 concerning Consumer Protection, particularly 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. He therefore hopes that the withheld MSME funds can be returned promptly and that similar practices will not recur in the future.