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Ministry blocks e-commerce app Temu to protect local firms

Ni Made Tasyarani (The Jakarta Post)
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Thu, October 10, 2024 Published on Oct. 10, 2024 Published on 2024-10-10T11:17:33+07:00

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Ministry blocks e-commerce app Temu to protect local firms The logo of Temu, an e-commerce platform owned by PDD Holdings, is seen on a mobile phone displayed in front of its website, in this illustration picture from April 26, 2023. (Reuters/Florence Lo)

T

he operation of Chinese e-commerce Temu has been blocked in Indonesia after industry groups urged the government to take the app down over concerns that it threatened local micro, small and medium enterprises (MSMEs).

"We have taken down Temu as a quick response to the concerns voiced by members of the public, especially MSMEs," Communications and Information Minister Budi Arie said at the ministry’s office on Wednesday, as quoted by news agency Antara.

According to the ministry, Temu cannot operate in Indonesia as it has not been registered as an electronic system provider (PSE) and has failed to comply with ministerial regulations.

Budi added that the decision to block Temu’s operations in the country came in response to a letter from Cooperatives and Small and Medium Enterprises (SMEs) Minister Teten Masduki who had requested protection for MSMEs against Temu's business model.

“Local MSME products need government protection from foreign marketplaces that sell foreign products directly from the factory, making them much cheaper. This is unhealthy competition that can threaten the sustainability of our MSMEs,” Budi explained.

Temu was recently found available on Google’s Play Store and Apple’s App Store in Indonesia, causing a stir online and complaints from the MSME community and government representatives.

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“We have blocked Temu on both App Store and Play Store to protect consumers and MSME actors,” Budi announced, as quoted by CNN Indonesia.

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