Measures seek to mitigate the monopolistic e-commerce practices inflicted on small businesses.
The new regulation allows social media companies to promote products but prohibits them from engaging in direct transactions.
Government officials in recent weeks called for social media and e-commerce to be decoupled, targeting platforms they say engage in monopolistic practices that threaten offline sellers, with some specifically blaming Chinese-owned short video app TikTok. Laws in the archipelago nation did not cover direct transactions through social media platforms such as TikTok, Facebook or Instagram before the new regulation.
Indonesia is one of the world’s biggest markets for TikTok Shop and was the first to pilot the app’s e-commerce arm.
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