JAKARTA, Oct 4 — Indonesia will maintain its ban on Chinese e-commerce platform Temu due to concerns over its impact on local micro, small, and medium enterprises (MSMEs), said the republic’s communications minister, Budi Arie Setiadi.
Temu is operated by PDD Holdings, the parent company of the well-known Chinese retailer Pinduoduo.
In recent months, Indonesian officials have been growing increasingly wary of Temu’s potential entry into the country’s market.
The platform’s direct-to-consumer sales model conflicts with Indonesian trade regulations that require intermediaries or distributors, said Isy Karim from the Trade Ministry.
According to Channnel News Asia, Budi said allowing Temu to operate in Indonesia could negatively affect the economy and society.
“Temu cannot enter because it damages the economy, especially Indonesian micro, small, and medium enterprises,” he was quoted as saying.
The Ministry of Cooperatives and SMEs disclosed that Temu has attempted to register in Indonesia three times.
Temu’s registration was denied because another business was already using its name, and the company became a point of discussion after its appearance at the recent E-commerce Expo in Greater Jakarta.
Indonesia had also banned TikTok Shop over similar concerns last year, although owner ByteDance overcame the prohibition this year by buying into local e-commerce platform Tokopedia.
