Indonesia Cracks Down On Social Media Transactions

time:2025-05-19 17:51:51 source:Trovanta

Indonesia has cracked down on social media-based e-commerce, banning financial transactions via social media.

According to CNBC, Indonesia’s ministry of trade announced the policy:

“One of the things that is regulated is that the government only allows social media to be used to facilitate promotions, not for transactions,” the ministry said.

Officials said the move — along with preventing social media companies from acting as e-commerce platforms — was necessary to protect user data.

“The connection [between social media and e-commerce] must be separated so that the algorithm is not all controlled” thus preventing “the use of personal data” by businesses. — Minister of Trade Zulkifli Hasan

While the policy impacts all social media, as CNBCpoints out, it is an especially big blow to TikTok, as the company has been working to expand its e-commerce business.

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