The Indonesian government is set to hold an interministerial meeting to address concerns over the entry of Chinese e-commerce platform Temu into the country, Asia News Network reported.
The meeting, involving the Cooperatives and Small and Medium Enterprises (SMEs) Ministry, the Trade Ministry, and the Communications and Information Ministry, is aimed at preventing Temu from operating in Indonesia.
‘Although [Temu] has yet to begin operating, it is available [on the App Store and Play Store]. We will try to take it down,’ said Fiki, a special staff member at the SMEs Ministry.
He added that Temu’s presence on the App Store and Play Store, despite not yet working fully, poses a significant threat to local small and medium-sized enterprises.
Temu’s business model allows direct transactions between consumers and factories in China, bypassing local intermediaries and resellers, which jeopardizes Indonesia’s domestic SMEs. The ministry also raised concerns over allegations that Temu sells products at subsidized, artificially low prices, undercutting local businesses.
Nandi Herdiaman, head of the local entrepreneurs’ association IPKB, expressed similar worries. Moreover, he highlighted the risk of increased unemployment due to reduced productivity and job losses in distribution.
‘It will disrupt the local industry, especially the textile industry, which has been facing a lot of pressure in Indonesia from large imports and price-dumping practices,’ Nandi added.
He also called for stricter nontariff barriers and import duties to safeguard the local economy and urged the government to enhance the competitiveness of domestic industries through incentives and technological investment.
Meanwhile, Indonesia’s Communications and Informatics Minister Budi Arie Setiadi reaffirmed the government’s stance on banning Temu, citing its non-compliance with trade regulations requiring intermediaries in sales.
The government has been monitoring Temu’s attempts to enter the Southeast Asian market, which have faced registration hurdles due to trademark conflicts and regulatory issues. Temu’s expansion into the region follows its success in the U.S. market, where it quickly gained a significant share. Indonesia recently banned TikTok Shop for similar reasons, emphasizing the protection of small merchants and local industry.