Jakarta, Indonesia – Popular Chinese e-commerce app Temu has been blocked from entering from Indonesia, according to a statement from Fiki Satari, Special Staff to the Minister for Creative Economy Empowerment at the Ministry–and confirmed by the country’s Ministry of Cooperatives and SMEs.
According to the ministry, should Temu enter the country, it will result in jeopardising sustainability of MSME players in the country.
“If Temu enters, it will greatly threaten local MSMEs. This application from China allows direct transactions between factories in China and consumers in Indonesia, which has the potential to kill small businesses here,” Fiki said in a statement.
Fiki explained that Temu’s business model enables goods to be sold directly from factories to consumers, eliminating the need for intermediaries like sellers, resellers, dropshippers, or affiliates. Furthermore, the platform offers subsidies, which significantly lowers product prices.
“They have entered the US and European markets, and are now expanding into Southeast Asia, including Thailand and Malaysia. Therefore, we must remain vigilant and ensure Temu does not enter Indonesia,” he added.
It is worth noting that since September 2022, Temu has tried to register its trademark in Indonesia three times. On July 22, 2024, they again applied for registration at the Directorate General of Intellectual Property Rights (DJKI), Ministry of Law and Human Rights.
“Temu App has tried to register trademarks, designs, and others with the DJKI. However, they have not been able to enter because there are already companies from Indonesia that have similar names and business categories. Even so, we must remain vigilant and continue to monitor,” Fiki explained.
Fiki hopes that various relevant agencies, including the Ministry of Law and Human Rights, the Ministry of Trade, the Ministry of Communication and Information, along with other stakeholders, will collaborate to prevent the entry of the Temu marketplace into Indonesia.
