The popular video-sharing app TikTok has suspended its online retailing feature in Indonesia in response to the country's decision last month to ban payment settlement procedures on social media platforms.

The e-commerce dealing on TikTok has been very popular in Indonesia since its introduction in 2021. The function allows users to pay for goods they decide to buy after watching online ads live-streamed by retailers.

The Chinese-owned app suspended the feature on Wednesday following the Indonesian government's decision to revise its e-commerce rules in September.

The government says the ban is designed to protect the country's small retailers.

It remains to be seen how the ban could affect consumption in Indonesia.

About 6 million retailers in the country are said to have used TikTok's feature to sell their goods. And an estimated 7 million influencers are said to have earned money through sales promotions for the retailers on TikTok.

A company that has sold menswear on TikTok since 2022 told NHK that the ban is likely to cost the firm the equivalent of more than 2,000 dollars a month in lost sales.

The company's manager said that Indonesians have become so enthusiastic about using TikTok that her company will lose a lot of business because of the ban. She added that her company will continue using TikTok to promote its products but will need to direct customers to another app to make payments.