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    Analisis Eksternalitas Pembukaan Kembali TikTok Shop Terhadap Pendapatan UMKM Indonesia

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    This study aims to analyze the external impact of the reopening of TikTok Shop on the income of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. TikTok Shop, as a form of a social media-based digital economy platform, was closed by the government because it was considered to create unfair competition against local MSMEs. However, after partnering with Tokopedia, this platform resumed operations in December 2023, creating new dynamics in the digital business ecosystem. This study uses a qualitative approach through literature studies with the latest academic sources. The results of the study show that positive externalities emerge in the form of increased digital literacy of MSMEs, expansion of market reach, and increased income through interactive features such as live shopping. On the other hand, there are negative externalities in the form of unbalanced price competition (predatory pricing), potential addiction to application use, and social impacts on conventional traders. This study recommends the need for an active role for the government in regulatory supervision, provision of digital training, and facilitation of MSME integration in digital platforms fairly. Thus, the existence of TikTok Shop can be a catalyst for inclusive and sustainable digital transformation for the MSME sector in Indonesia
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