Alfida Rizky Febrianna, Jakarta – The Indonesian government is considering a ban on the Chinese online marketplace, Temu, which facilitates direct transactions between Chinese producers and global consumers, citing concerns it could harm local small and medium enterprises (SMEs), an official said on Wednesday.

If allowed to operate in Indonesia, Temu could disrupt local distribution channels and flood the market with cheap products shipped directly from China, said Fiki Satari, an advisor to the Cooperatives and SMEs Minister.

"The Temu app from China previously attempted to register its trademark with the Directorate General of Intellectual Property Rights but failed because the name had already been claimed by an Indonesian company. However, we must remain vigilant to prevent its entry," Fiki said in a press statement.

He added, "Allowing Temu to enter Indonesia would jeopardize domestic SMEs, as the platform enables direct transactions between Chinese factories and consumers in the destination country."

Direct cross-border transactions without intermediaries like sellers, resellers, or drop shippers allow manufacturers to keep prices extremely low, creating competition that could potentially undermine small businesses in the countries where it operates.

According to Fiki, Temu has already penetrated markets in the United States, Europe, and several Southeast Asian countries.

Fiki urged the Directorate General of Intellectual Property Rights and the Communication and Informatics Ministry to block Temu from entering Indonesia in order to protect the nation's SMEs.

Source: https://jakartaglobe.id/tech/indonesia-seeks-to-ban-chinese-app-temu-to-protect-small-businesse