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e-Commerce

Indonesia Slams Door on Temu to Protect Small Enterprises

Nicole Kristine Jovero
Last updated: October 9, 2024 1:25 am
Nicole Kristine Jovero
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1 Min Read
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  • 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

Contents
David vs Goliath in e-commerceRegulatory red flagSoutheast Asian expansion hits a snag

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.

TAGGED:div5

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