October 3, 2023 at 5:52 AM EDT

Updated on

October 3, 2023 at 6:08 AM EDT

TikTok will suspend its online-retail operation in Indonesia from Wednesday to comply with curbs on social commerce, a big setback for the Chinese-owned startup in one of its fastest-growing markets.

The company will stop facilitating e-commerce transactions on TikTok Shop Indonesia from 5 p.m. Jakarta time on Oct. 4, it said in a statement Tuesday. The company said that its priority is to remain compliant with laws and regulations and that it will coordinate with the Indonesian government for its next steps.

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