TikTok ends online shopping service in Indonesia

Oct. 4 (UPI) -- TikTok said on Wednesday it was shutting down its online shopping service in Indonesia because of new rules imposed by the country to protect local businesses.

"Our priority is to remain compliant with local laws and regulations," TikTok said in a statement. "As such, we will no longer facilitate e-commerce transactions in TikTok Shop Indonesia ... and will continue to cooperate with the relevant authorities on the path forward."

Last week, Indonesian trade minister Zulkifi Hasan announced the country would implement a new regulation allowing social media to be used only to "facilitate promotion, not for transactions."

TikTok has 113 million users in Indonesia, making the country its second-largest market behind the United States with 116.5 million.

TikTok CEO Shou Zi Chew visited the country over the summer as he pledged to invest billions of dollars in the region in the coming years.

Indonesia's central bank estimated the value of e-commerce sales would rise to $44 billion by 2024, six times greater than 2018.

Hasan said the regulation would also prevent social media companies from acting as e-commerce platforms to "prevent misuse of public data" and that it would regulate the sale of overseas goods.