(Yicai) Oct. 12 -- TikTok, a Chinese short-video platform, is considering its options after Indonesia banned transactions on social media platforms to protect small businesses.

"The reasons behind this sudden incident are complicated, but we will strive for early recovery," Kang Zeyu, head of TikTok e-commerce, said in an internal letter recently

Market participants wonder whether ByteDance, the Chinese operator of TikTok, will start a standalone e-commerce platform or find another way to bypass the new rules as the Indonesian government started to prohibit social media platforms from facilitating sales of products on Sept. 28. The minimum price of goods purchased directly from abroad is USD100 and imported products need to meet other requirements too.

TikTok will continue to provide services for micro, small, and medium-sized enterprise communities in Indonesia in the future, per the letter. The company is still actively discussing with relevant authorities, striving to develop products and business solutions to find the best way to continue to provide good services to Indonesian enterprises and users, it added.

ByteDance stopped allowing e-commerce transactions on TikTok Shop in the Southeast Asian country last week. In the past two years, the shopping platform served 80 million local users, providing opportunities for millions of sellers and creators, per the letter.

Some Chinese sellers who run businesses in Southeast Asia are considering returning home, and some have already started to look into the American market. Many people are thinking about the next step, said Molly, founder of TikTube, a local mobile application.

Although TikTok Shop has been removed from app stores, sellers can still promote products on TikTok but transactions must be completed on other platforms, the TikTube founder added. Content creators continue to have many opportunities in Southeast Asia, she added.

The main reason for Indonesia's ban is to protect local retailers, including local e-commerce companies, said Li Chengdong, founder of DolphinDB. The policy will definitely hurt TikTok's business in the short term, but the firm's financial resources and experience in operating e-commerce will keep it competitive in the Indonesian market in the long run, Li added.

Editor: Emmi Laine