Quick access to main page (top) Direct access to main contents Quick access to main page (bottom)

‘No China-Made Goods Here!’ The Country That Slammed the Door on Temu

Daniel Kim Views  

Baidu capture

Indonesia is maintaining its block on the Chinese e-commerce platform Temu to protect its local small and medium-sized enterprises (SMEs).

The Indonesian government has been preventing Temu from entering the market since its application in 2022 and is expected to continue this stance. In a recent statement, Budi Arie Setiadi, Indonesian Minister of Communication and Information Technology, explained that Temu’s presence could potentially harm the country’s economy, particularly its small and micro-enterprises. He emphasized that the government would not allow any flexibility on this issue.

Setiadi emphasized the need to ensure that the country’s online marketplace supports productivity and profitability for local businesses, warning that “this is unhealthy competition that can threaten the sustainability of our MSMEs.”

Since September 2022, Temu has made three attempts to register for entry into the Indonesian market, but each application has been rejected. Piki Satari, an advisor at the Ministry of Cooperatives and SMEs, explained that Temu’s recent registration was denied because a local company uses the same trademark.

The Indonesian Ministry of Trade also raised concerns about Temu’s business model, which directly connects Chinese manufacturers with consumers, bypassing local intermediaries and distributors. Officials pointed out that Temu’s business model eliminates local sellers and delivery companies, allowing foreign firms to squeeze local SMEs to maintain lower prices.

In June, Teten Masduki, Minister for Cooperatives and Small and Medium Enterprises, mentioned that Temu poses a greater threat than TikTok Shop, the e-commerce arm of the video platform owned by China’s ByteDance. TikTok Shop entered the Indonesian market in 2021 and experienced rapid growth. However, the Indonesian government effectively halted its operations last year by prohibiting sales on social media to protect the local e-commerce sector.

In response, TikTok invested $1.5 billion in Tokopedia, Indonesia’s largest e-commerce company, and became the majority shareholder to resume its local online shopping operations.

Temu launched its services in the U.S. in September 2022 and has since expanded globally. It has expanded to over 70 markets worldwide, including Korea. Recently, it also started operations in Thailand, further expanding into the Southeast Asian market.

Daniel Kim
content@viewusglobal.com

Comments0

300

Comments0

[BUSINESS] Latest Stories

  • Honda's NSX Returns: A 1,000-Horsepower Electric Rival to Lexus LFR
  • Honda’s S7 Electric SUV: A Major Player in the Race for EV Dominance
  • Lamborghini's First EV: A 2,000-Horsepower Beast Built for Speed and Emotion
  • Ford Revives Classic Design with the 2025 Bronco Heritage Edition
  • ID.EVERY1: Volkswagen's $21K Electric Vehicle Aims to Make Green Driving Accessible
  • Toyota’s bZ3X SUV Surges with 10,000 Pre-Orders: A New Era in EVs

You May Also Like

  • 1
    Yogurt: Diet Savior or Sneaky Saboteur? Here's What You Should Know

    LIFESTYLE 

  • 2
    Blackberries vs. Raspberries: Which Berry Is the Low-Calorie King?

    LIFESTYLE 

  • 3
    Why Some People Gain Weight on Salads—and Others Don’t

    LIFESTYLE 

  • 4
    This Vitamin Could Help You Fight Fatigue, Infections, and More

    LIFESTYLE 

  • 5
    Olive Oil on an Empty Stomach – Hype or Health Miracle?

    LIFESTYLE 

Popular Now

  • 1
    Why Guava Is a Must-Have for Anyone Watching Their Blood Sugar

    LIFESTYLE 

  • 2
    Parkinson's Puzzle: Study Explains How PINK1 Gene Fights Cell Damage

    LIFESTYLE 

  • 3
    Feeling Drained No Matter How Much You Sleep? Here’s Why

    LIFESTYLE 

  • 4
    Hope for Alzheimer’s? Anti-Amyloid Treatments Linked to 50% Lower Risk

    LIFESTYLE 

  • 5
    Can Eating Only Boiled Eggs Really Help You Lose Weight?

    LIFESTYLE 

Must-Reads

  • 1
    Yogurt: Diet Savior or Sneaky Saboteur? Here's What You Should Know

    LIFESTYLE 

  • 2
    Blackberries vs. Raspberries: Which Berry Is the Low-Calorie King?

    LIFESTYLE 

  • 3
    Why Some People Gain Weight on Salads—and Others Don’t

    LIFESTYLE 

  • 4
    This Vitamin Could Help You Fight Fatigue, Infections, and More

    LIFESTYLE 

  • 5
    Olive Oil on an Empty Stomach – Hype or Health Miracle?

    LIFESTYLE 

Popular Now

  • 1
    Why Guava Is a Must-Have for Anyone Watching Their Blood Sugar

    LIFESTYLE 

  • 2
    Parkinson's Puzzle: Study Explains How PINK1 Gene Fights Cell Damage

    LIFESTYLE 

  • 3
    Feeling Drained No Matter How Much You Sleep? Here’s Why

    LIFESTYLE 

  • 4
    Hope for Alzheimer’s? Anti-Amyloid Treatments Linked to 50% Lower Risk

    LIFESTYLE 

  • 5
    Can Eating Only Boiled Eggs Really Help You Lose Weight?

    LIFESTYLE 

Share it on...