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Fortune
Fortune
Lionel Lim

New rules from Jakarta are dealing a blow to TikTok's e-commerce dreams

TikTok CEO Shou Zi Chew speaking at the TikTok Southeast Asia Impact Forum 2023 in Jakarta. (Credit: Bay Ismoyo—AFP via Getty Images)

Indonesia has dealt a critical blow to TikTok's bold plan to turn millions of users into shoppers.

On Wednesday, TikTok, which is owned by the Chinese technology firm ByteDance, suspended its shopping platform in the Southeast Asian country to comply with new government regulations. TikTok Indonesia said in a statement on Tuesday that its “priority is to remain compliant with local laws and regulation” and as such will “no longer facilitate e-commerce transactions in TikTok Shop Indonesia”, starting 5:00 pm local time on Oct. 4.

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