Sunday, December 3, 2023

TikTok Project S pushes the government to establish special digital task forces

Reading Time: 2 minutes
Mahinda Arkyasa

Journalist

Editor

Interview

TikTok’s Project S initiative had previously raised concerns within the government, as it was feared that it might disrupt business competition, especially among small and medium-sized enterprises (UMKM). Consequently, the government is preparing to establish two digital task forces.

“We have agreed to form two task forces, namely the digital government and digital economy task forces,” said Minister of Cooperatives and SMEs, Teten Masduki, during a press conference at the AFPI UMKM Digital Summit 2023 in Jakarta on Thursday, September 14th.

The digital economy task force will comprise of the Ministry of Cooperatives and SMEs, the Ministry of Industry, the Ministry of Investment, the Ministry of Trade, and the Ministry of Communication and Information Technology (Kominfo).

This task force will focus on maximizing the economic benefits of Indonesia’s digital sector for domestic businesses, including UMKMs. “Currently, it is dominated by foreign entities,” he stated.

He pointed out that the financial sector is controlled by domestic companies, accounting for 96% of the market, while foreign entities dominate 56% of the e-commerce sector.

This has raised concerns within the government regarding the appropriate solutions, whether through investment policies, trade measures, or exploring digital transformation in different aspects of the economy.

The government has intensified its discussions on e-commerce-related policies following the viral Project S TikTok.

The Project S TikTok first came to light in the United Kingdom when the Financial Times reported it. The Chinese social media platform launched a new feature called “Trendy Beat” in early July.

Products displayed on the “Trendy Beat” feature of TikTok were said to be directly shipped from China, with the sellers registered in Singapore but ultimately owned by the parent company, ByteDance.

Through Project S TikTok Shop, it is alleged that TikTok can gather diverse data on products in high demand or desired by consumers. Subsequently, algorithmic systems are said to guide consumers towards purchasing products owned by the company.

Mahinda Arkyasa

Journalist

 

Editor

 

Interview

SUBSCRIBE NOW
We will provide you with an invoice for your reimbursable expenses.

Free

New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.

Premium

$550 USD/Year

or

$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.

FURTHER READING

The government is advised to exercise caution in developing nuclear power plants (NPPs) as their development poses various risks that require careful consideration.
Presidential and vice-presidential candidate Prabowo Subianto and Gibran Rakabuming Raka have outlined their vision to construct 10 innovation cities across Indonesia if they emerge victorious in the 2024 Presidential Election.
The government plans to encourage larger exports to non-traditional markets such as India, Pakistan, and Mexico. Indonesia’s exports have traditionally been dominated by China, the United States, and European countries.¬†
The Corruption Eradication Commission (KPK) is currently investigating three cases of alleged corruption in the Ministry of Agriculture (Kementan), involving the procurement of cattle, horticulture, and extortion.
PT PGN Tbk, a Subholding Gas under Pertamina, is committed to enhancing its responsiveness to customer complaints by implementing various initiatives.
The official establishment of the Comprehensive Investment and Policy Plan (CIPP) within the Just Energy Transition Partnership (JETP) marked a significant milestone in Indonesia’s move towards achieving net-zero emission.