Managing Foreign Product Trade Impact: Indonesia's Strategic Sovereignty and the Case of TikTok Shop
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Abstract
Abstract: This study examines state sovereignty in the regulation of the impact of foreign product trade, specifically analyzing Indonesia's strategic steps toward the existence of TikTok Shop through the issuance of Ministry of Trade Regulation No. 31 of 2023. State sovereignty is recognized as full authority that cannot be interfered with by foreign powers, serving as the basis for international interactions. The TikTok Shop phenomenon reflects the optimization of online buying and selling, facilitating transaction processes. The role of social media, especially TikTok, plays a significant part in enhancing business performance, particularly for small businesses. However, the Indonesian government responded by closing TikTok Shop to protect micro, small, and medium enterprises and user data.
Purpose: This research aims to analyze the conflict of interest between the state and social media platforms that provide trading services, as well as the establishment of strategic steps as an expression of state sovereignty in regulating all forms of trade in Indonesia, particularly through the case of the closure of TikTok Shop in Indonesia.
Design/Methodology/Approach: This research is descriptive qualitative. The primary data analyzed were obtained from legal instruments such as legislation, ministerial regulations, and similar official rules issued by the government. The secondary data consisted of articles collectively obtained to gain an understanding of the causes, effects, and implications of the closure of TikTok Shop as a consequence of state sovereignty in regulating trade within the country.
Findings: The results of the study indicate that in a global context, international cooperation remains important, and Indonesia strives to maintain its national legal sovereignty while contributing to global digital trade standards. In the face of various perspectives and impacts, the closure of TikTok Shop is interpreted as a governmental measure to protect national interests and exercise its legal sovereignty.
Originality/value: This study makes a significant contribution to the existing literature by exploring the dynamics between state sovereignty and digital trade regulation in the context of Indonesia. It emphasizes the importance of balancing national legal sovereignty with participation in global digital trade standards, offering valuable insights for policymakers and academics in understanding the implications of trade regulation in the digital era.
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