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Indonesia Bans Chinese E-Commerce App Temu

Accepted submission by Arthur T Knackerbracket at 2024-10-15 13:26:48
Business

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Arthur T Knackerbracket has processed the following story [theregister.com]:

Indonesia's government last week ordered Apple and Google to remove Chinese e-commerce app Temu from their app stores.

A government announcement [kominfo.go.id] quotes minister of communication and information Budi Arie Setiadi explaining that Temu has not registered to operate in Indonesia. He's also concerned about competition issues.

"Local MSME products need government protection from foreign marketplaces that sell foreign products directly from their factories so that the prices are very cheap. This is unhealthy competition and threatens the sustainability of local MSME businesses," the minister is quoted as saying.

The government statement also observes that "Based on experience in several countries, the application from China is detrimental to local MSMEs as well as consumers. The quality of products sold by Temu also does not meet quality standards, thus harming consumers or buyers."

The minister has also made remarks suggesting another Chinese e-commerce app – Shein – is in his sights.

China has made offshore growth of its e-commerce giants a national priority and Indonesia – the world's fourth most populous nation – is a natural target for that ambition. However many governments are probing Temu and Shein on matters ranging from human rights to tax evasion. Indonesia is fiercely protective of its local market, as the nation aspires to grow its own digital giants.


Original Submission