KPPU Reschedules TikTok Hearing
Investigation into alleged monopoly practices in the e-commerce digital ecosystem involving TikTok and Tokopedia has entered a new phase. The Competition Supervisory Commission (KPPU) has rescheduled its summons to TikTok after previous attempts yielded no results.
The case stems from a report by the E-commerce Logistics Entrepreneurs Association (APLE) regarding alleged competition law violations following the integration of TikTok Shop and Tokopedia. The merger of the two platforms is seen as potentially creating significant dominance across the digital business chain, from content distribution, e-commerce, payment systems, to logistics services.
Deswin Nur, Head of KPPU’s Public Relations and Cooperation Bureau, stated that the investigation is ongoing, with investigators currently gathering evidence before proceeding to the filing and trial stages. ‘KPPU investigators are collecting necessary evidence, with information from the complainant as the primary source, alongside data from other parties,’ he said in a statement on Monday (25 May).
He added that the summons for TikTok as the defendant will be rescheduled again. KPPU has not detailed why the previous summons was not fulfilled but assured the investigation continues. ‘Rescheduling is still ongoing,’ he said.
The case has drawn attention due to its implications for competition within Indonesia’s growing digital economy. APLE estimates potential losses from reduced competition could reach 10-15% of Indonesia’s digital economy, valued at approximately $100 billion or Rp1.75 trillion.
APLE said these losses stem from reduced market efficiency and narrowed competition space for other businesses following the TikTok Shop-Tokopedia integration.
In its report, the association highlighted alleged loss-leading practices—selling at extremely low prices through heavy discounts and shipping subsidies—which could suppress competitors lacking similar financial capacity.
ALGORITHM USE
APLE also raised concerns over platform algorithms allegedly prioritising products and services within TikTok-Tokopedia’s internal ecosystem, which could limit visibility for external businesses.
Another issue highlighted is the alleged redirection of transactions to integrated service providers, which could reduce consumer choice and harm logistics firms outside the internal network.
APLE suspects vertical integration linking social media, trading platforms, digital payments, and logistics could create market dominance difficult for other businesses, especially SMEs, to challenge.
SME PROTECTION
Previously, Minister of Micro, Small, and Medium Enterprises (UMKM) Maman Abdurrahman stated the government firmly defends SME interests against digital platforms like TikTok Shop, which have repeatedly raised service fees charged to SMEs in the past month.
Maman said digital platforms arbitrarily raising service fees and harming SMEs are engaging in unethical market abuse by exploiting systemic dominance. ‘I urge e-commerce platforms prone to market abuse to remember our presence; the UMKM Ministry will stand firm in defending micro and small entrepreneurs across the country,’ he said at the Ministry of Communications and Digital Affairs office in Jakarta on Thursday (21 May).
Maman noted it is reasonable for digital platforms to charge SMEs service fees, but these must be reviewed periodically. Continuous fee increases without clear scheduling could weaken SME competitiveness and their ability to support the national economy. He cited reports of platforms raising service fees in mid-May 2026, followed by additional charges for returned goods effective 1 June 2026. To address this, he said the ministry will meet KPPU to follow up on SME complaints and seek fair solutions.