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Indonesia’s E-commerce Social Network Prohibition is Hurting Some Vendors, but Alibaba’s Lazada is Trying to Win them Over

Alibaba-owned Southeast Asian e-commerce site Lazada is courting vendors impacted by Indonesia’s most recent e-commerce law, according to James Chang, the country’s country chief executive officer, who spoke to staff on Friday during a town hall meeting.

We are assisting those micro, small, and medium-sized businesses that have been negatively impacted by the most recent regulatory reforms by onboarding them to Lazada, he continued.

In an effort to defend domestic firms, Indonesia has recently stepped up its crackdown on social networking sites that support e-commerce, such as TikTok. According to recent comments made by the president, Joko Widodo, a rise in foreign imports made possible by these platforms was a factor in indigenous enterprises’ sales declining.

Indonesia last week imposed a ban on social media purchases and gave TikTok one week to become a separate app devoid of any e-commerce functionality or risk closure.

TikTok Indonesia responded on Tuesday by announcing that it would stop enabling e-commerce transactions and adhere to regional rules.

Chang stated in the town hall meeting he held for Indonesian employees that the recent regulatory reforms had created “a more positive, healthy competitive landscape for our industry’s long-term growth.”

In addition, he said, new sellers who join up independently will receive a credit for seller solutions of 300,000 Indonesian rupiah ($19.19) and seller commission-free periods of three months and two months, respectively.

Source (CNBC)

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