TikTok Shop Faces Mounting Problems and Complaints, E-Commerce Bosses Summoned by Parliament

Jakarta - The House of Representatives (DPR) will summon a number of e-commerce platforms to resolve issues within the digital trade ecosystem, particularly those affecting micro, small, and medium enterprises (UMKM). The summons for TikTok and Tokopedia relates to complaints from hundreds of UMKM traders on the platforms. The hearing will seek explanations and solutions regarding the freezing of traders’ accounts. “Today we heard directly the complaints from UMKM players. Going forward, we will certainly invite TikTok, and possibly Tokopedia, so that this issue can be thoroughly discussed and does not recur,” said Evita Nursanty, Deputy Chair of Commission VII of the DPR. She explained that Commission VII wants to resolve the problems experienced by UMKM, as well as push for clearer rules for digital platforms. The DPR therefore plans to summon other relevant parties, including Shopee, the Ministry of Communication and Digital Affairs, the Ministry of Trade, and the Business Competition Supervisory Commission (KPPU). She added that resolving digital transaction issues requires the involvement of all stakeholders. “We want clear regulations from marketplaces and digital platforms. Issues like this must not keep recurring and harming UMKM,” she added. Commission VII confirmed it will hear direct explanations from the parties being complained about, after which follow-up steps will be formulated. “We cannot listen to only one side. Since we have received complaints, we will certainly follow up by bringing in the parties concerned so that this issue can reach a fair solution,” said Evita. Novita Hardini, a member of Commission VII, strongly criticised the freezing of TikTok Shop sellers’ balances, which she said reflects the state’s weak protection of UMKM in the digital economy era. She made the remarks during a Hearing and Public Hearing meeting of Commission VII with the Ministry of UMKM and the Indonesian Advocates Association (Peradi) Bekasi branch, discussing the unilateral freezing of online sellers’ balances. According to Novita, sales proceeds are the lifeblood of UMKM business continuity, so the unilateral withholding of balances is not merely an administrative issue but concerns the survival of millions of small business owners. “This case proves that the people are once again victims of a system failure. Sales funds are the breath of UMKM. When they are frozen unilaterally, it is not only their businesses that are threatened, but also their families’ livelihoods,” she asserted.