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The social media app TikTok is suspending its online shopping service in Indonesia in order to comply with new regulations in the country. The move will take effect at 17:00 Jakarta time. The Indonesian government implemented these regulations to protect local retailers both online and offline. Indonesia was the first country where TikTok piloted its e-commerce service, and it quickly became one of the app's biggest markets for TikTok Shop. However, last week, Indonesia announced that TikTok would have to separate its shopping feature from the popular video sharing service. The trade minister stated that e-commerce and social media should be separated. Social media platforms were given a week to comply with the new rules or face losing their operating license in the country. TikTok stated that it wants to prioritize compliance with local laws and regulations, hence its decision to halt e-commerce transactions in TikTok Shop Indonesia. The value of e-commerce sales in Indonesia is expected to grow significantly in the coming years, reaching 689 trillion Indonesian rupiah by next year. TikTok Shop had been gaining market share in Indonesia's online shopping market, which is currently dominated by platforms like Tokopedia, Shopee, and Lazada. The country has a large user base of over 125 million TikTok users, including millions of sellers and creators who earn money through TikTok Shop. TikTok's CEO had previously pledged to invest billions of dollars in the region over the next few years. The growth of online retailers has affected physical shops, with many seeing a decline in customers. There are more than 64 million small businesses in Indonesia, which make up a significant portion of the country's economy. These new regulations are another setback for TikTok, which has faced scrutiny in other countries like the US, EU, and UK due to security concerns.