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Shopee Indonesia closes 13 product categories to foreign goods
E-commerce platform Shopee has restricted 13 product categories, mostly Muslim fashion products, to shield local sellers from foreign competitors, potentially unlocking a nearly Rp 300 trillion market for such sellers.
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Illustration of e-commerce platform Shopee. (Shutterstock.com/shutter_o/File)
T
op e-marketplace Shopee Indonesia has closed off 13 product categories from foreign products in following government orders to protect local micro, small and medium enterprises (MSME).
As of Tuesday, the closed categories include Muslim clothes, outerwear, veils, mukena (head-to-toe prayer gowns), prayer accessories, batik and kebaya (traditional blouses), among other categories. The Cooperatives and SME Ministry is identifying other product categories to be closed.
“We will keep reviewing how we can restrict and give priority to local products and sellers,” said Shopee Indonesia executive director Handhika Jahja on Tuesday. “These 13 types of business are our initial study that we will continue discussing in line with government orders.”
Handhika said the restriction was not expected to hurt the company’s business as foreign products accounted for only around 3 percent of the products traded on the platform.
He also said the restriction applied to foreign products regardless of the country of origin. He did not disclose the number of merchants affected by the restriction.
Read also: Shopee reigns over Indonesia’s e-wallet market with price cuts, good looks
In recent months, the government has shown an inclination to limit imported goods volumes on e-commerce platforms to shield MSMEs, an economic sector that absorbs 97 percent of the work force and that relies on e-commerce platforms to expand market reach and maintain sales amid mobility restrictions.
