- Indonesia upholds Temu ban to protect local enterprises
- Officials cite regulatory violations and economic concerns
- Move reflects Indonesia’s cautious approach to global e-commerce platforms
David vs Goliath in e-commerce
Indonesia has decided to maintain its ban on e-commerce platform Temu, citing concerns over the potential disruption to its micro, small, and medium enterprises.
The global marketplace, operated by PDD Holdings, faces a roadblock in Southeast Asia’s largest economy due to its factory-to-consumer business model.
Regulatory red flag
Indonesian officials argue that Temu’s direct-selling approach violates local trade regulations requiring an intermediary or distributor.
Communications Minister Budi Arie Setiadi emphasized the government’s stance, stating that allowing Temu’s entry could harm the country’s economy and society.
Southeast Asian expansion hits a snag
This ban comes amid Temu’s recent expansion into Southeast Asian markets, including the Philippines, Malaysia, and Thailand.
The decision echoes Indonesia’s previous move to ban TikTok Shop, highlighting the country’s protective stance towards its local digital economy and small businesses.
