Facebook Faces Potential Block: What are the Impacts on Businesses?

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Adi Ahdiat 29/06/2022 15:30 WIB

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According to a survey by PwC and INDEF, Facebook has helped many Indonesian businesses in marketing, sales, distribution, and product innovation and development.

Benefits of Facebook for Indonesian Business Respondents (2019)

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Benefits of Facebook for Indonesian Business Respondents (2019)

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The Ministry of Communication and Informatics (Kominfo) reports that thousands of Electronic System Organizers (PSEs) or private internet companies have yet to complete their business licensing administration in Indonesia, including Facebook.

Facebook faces the threat of being blocked if it fails to complete this administrative process by next month.

"If PSEs do not register by the deadline of July 20, 2022, unregistered PSEs will be considered illegal in Indonesian jurisdiction. And if categorized as illegal, blocking can be implemented," stated the Ministry of Kominfo in its press release on Monday, June 27, 2022.

If this happens, blocking Facebook is expected to hinder many business activities in Indonesia.

According to the research report *Facebook's Social and Economic Impact in Indonesia*, Mark Zuckerberg's social media platform has assisted many businesses in marketing, sales, distribution, and product development.

A survey of 1,033 Indonesian business users of Facebook applications showed that 86% of respondents stated Facebook helped them increase their customer base.

Furthermore, 79% of respondents benefited from lower marketing costs, 75% were assisted in product innovation, 68% received more orders from outside their city, and 66% were able to implement cheaper customer service fees.

"Facebook apps play a role in supporting the development and growth of many new businesses in this ever-evolving digital economy," the report stated.

"Facebook apps give businesses the ability to quickly reach thousands of potential customers, providing them with a central online location to start and/or grow their businesses," it continued.

This report was released by Facebook in collaboration with PricewaterhouseCoopers (PwC) Indonesia and the Institute for Development of Economics and Finance (INDEF).

(Also Read: Facebook Faces Blocking, What are the Potential Losses?)

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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