Jakarta, CNBC Indonesia – TikTok employees around the world are worried because of the new policy regarding performance appraisals. They are worried that TikTok management plans to cut bonuses or carry out a new wave of layoffs.

Wall Street Journal reported that TikTok asked managers around the world to give lower scores to their employees in periodic performance reviews.

This order was conveyed to mid-level managers by senior managers and HRD staff to middle-level managers. Managers were asked to place their subordinates in the lowest category in employee performance groupings. This policy could cause the number of TikTok employees with substandard performance to jump two to three times.

The ratings F meaning “failed” and I meaning “not completed” are the two lowest of the eight performance scores on TikTok. Ratings in those categories could mean lower bonuses.

TikTok, the private company with the highest valuation in the world, has been aggressive in recruiting employees in recent years. Currently, this subsidiary of ByteDance employs around 130,000 people worldwide.

In Indonesia, TikTok’s ambition to enter the e-commerce business after the success of its social media platform was dashed. TikTok Shop had to close in Indonesia after the Indonesian government banned social media companies from running e-commerce businesses on the same platform.

Even so, the Indonesian government still opens up the opportunity for TikTok Shop to resume operations as long as it complies with all applicable e-commerce regulations.

“He [TikTok] follow the rules. “We are indeed open to foreign investment,” said Minister of Cooperatives and SMEs, Teten Masduki, at the office of the Ministry of Cooperatives and SMEs, Jakarta, Wednesday (25/10/2023).

Meeting Jokowi

Teten emphasized that TikTok needs to follow the rules regarding e-commerce services in Indonesia. This refers to Minister of Trade Regulation No. 31 of 2023 which was promulgated at the end of last September.

“TikTok doesn’t work anymore [gabung e-commerce], Must be separated. There are different data uses for social media than people use for shopping. “It can’t be misused,” he said. “They must have an office here and cannot have a representative office. “Indonesian legal entity,” continued Teten.

Quoting advice from President Joko Widodo (Jokowi), Teten said TikTok needed to develop a sustainable business model. This can later be complemented in other policies related to platforms and electronic trading.

On that occasion, Teten also explained that TikTok CEO Shou Chew wrote to President Joko Widodo. Chew is said to have invited Jokowi to meet.

[Gambas:Video CNBC]

(dem/dem)