Indonesia's parliament presses TikTok Shop over frozen seller funds

Indonesia’s House of Representatives has called on TikTok Shop to provide a fuller explanation of funds frozen across 217 seller accounts, after small businesses complained that account restrictions had disrupted their operations.

The House’s Commission VII held a hearing with TikTok and Tokopedia on  8 September, following complaints submitted by MSMEs over allegedly prolonged account and fund freezes.

The dispute centres partly on the amount of money involved. Representatives of affected sellers previously told lawmakers that around 500 sellers could have been affected nationwide, with an estimated IDR 3 trillion (US$171 million) in funds held.

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TikTok Shop and Tokopedia, however, put the value substantially lower based on their own investigation. Executive director Stephanie Susilo said the company had reviewed 217 seller accounts involving around IDR 24 billion (US$1.4 million) in affected funds. Of that amount, IDR 16.7 billion (US$950,000) was associated with verified fraud cases.

She said the freezing of funds was a temporary security measure intended to protect both buyers and sellers while investigations were conducted.

Sellers could provide additional information or appeal if they believed an account had been restricted incorrectly. Where an investigation finds no wrongdoing, the funds would be released, Susilo added.

According to the company, 208 of the 217 accounts had already gone through the investigation process. The remaining accounts did not require further action because they were inactive, duplicated or had returned to normal status.

For lawmakers, however, questions remain over why individual accounts were frozen and how long some restrictions had remained in place.

Commission VII deputy chair Evita Nursanty said the hearing was intended to seek clarification and a resolution rather than establish legal liability.

She said lawmakers had a responsibility to follow up on public complaints and oversee the protection and empowerment of MSMEs, particularly as digital platforms become an increasingly important route to market for small businesses.

The hearing also raised concerns about the transparency of automated enforcement systems used by digital commerce platforms. While acknowledging the need for safeguards against fraud and abuse, Nursanty said sanctions should be accompanied by sufficient explanations and balanced verification.

Seller representatives, meanwhile, said some businesses had experienced prolonged restrictions and unclear explanations for why their funds were being withheld. Gekrafs Bekasi City branch head Siska Yofthie said some sellers claimed balances had been withheld or had appeared to disappear from their accounts, resulting in significant losses for businesses dependent on the platform.

The House is due to hold another meeting next week, when TikTok Shop is expected to provide more detailed information on the 217 cases, including the reasons for the restrictions and the length of each investigation.

Discover what's next in Indonesia's fast-moving digital landscape at DMA Indonesia 2026 on 13 October in Jakarta, where marketing leaders will explore how AI, creator ecosystems, social commerce, and omnichannel strategies are reshaping customer engagement and business growth.

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