Indonesia has banned direct transactions on social media platforms in a new regulation, in order to protect local small businesses from competition from online sellers.

The new rule went into effect on Wednesday and gives social media firms one week to comply.

The regulation means that social media firms will only be able to promote products on their platforms, but not sell them directly.

This is a major setback for TikTok, which is one of the biggest platforms for social commerce in Indonesia.

The Indonesian government says that the new regulation is necessary to ensure "equality in business competition" and to protect local small businesses.

However, some experts have warned that the ban could harm consumers by limiting their choices and driving up prices.

On the side Panji Made Agung, a 29-year individual who bakes cookies, in Bali expresses his disappointment with the ban while talking to AFP.

He believes that TikTok serves as a platform for him to connect with customers and promote his products.

The enforcement and impact of the ban on users are yet to be determined.

Nonetheless, it is evident that the Indonesian government is concerned about the increasing influence of media platforms and their effects on the economy.

It's important to mention that this ban coincides with TikTok Shop facing scrutiny globally.

In the United States TikTok Shop is under investigation by the Federal Trade Commission due to violations of consumer protection laws.

Similarly, in the United Kingdom, TikTok Shop has been banned from Apple's App Store for failure to comply with company guidelines.