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Govt keeps close eye on Chinese e-commerce platform Temu
The government is on high alert over the potential entry of Chinese e-commerce platform Temu, arguing it could undermine local small and medium-sized enterprises (SMEs) and disrupt domestic supply chains.
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The logo of Temu, an e-commerce platform owned by PDD Holdings, is displayed on a mobile phone in front of its website in this illustration picture from April 26, 2023. (Reuters/Florence Lo)
T
he government is on high alert over the potential entry of Chinese e-commerce platform Temu, arguing it could undermine local micro, small and medium-sized enterprises (MSMEs) and disrupt domestic supply chains.
Temu’s business model of selling products directly from factories to consumers seemed to contradict Government Regulation No. 29/2021 on trade, said the Trade Ministry’s domestic trade director general, Isy Karim.
“Factory-to-consumer is not compatible with our policies. Every activity from factory to consumer must have an intermediary, a distributor,” Isy said on Wednesday, as quoted by CNN Indonesia.
“We will monitor the situation closely,” he vowed, even as Temu had yet to obtain an operating license for Indonesia.
Temu is a sister company of Chinese e-commerce giant Pinduoduo, launched by China’s PDD Holdings in September 2022.
Read also: Meta, YouTube, TikTok want e-commerce licenses. Why?
The marketplace lets more than 80,000 suppliers, predominantly from China, sell directly to international consumers, AP reported last year.
