JAKARTA – The Indonesian Communication and Information Ministry has blocked the Temu application, citing non-compliance with regulations, aimed at protecting micro, small, and medium enterprises (MSMEs) and consumers.
Spokesperson Prabunindya Revta Revolusi explained that Temu – a Chinese online marketplace that connects products directly from factories to consumers – has raised concerns about potential predatory pricing and price dumping.
In a statement, he warned that: “If foreign products enter the market at significantly lower prices than those of MSMEs, consumers will certainly choose the cheaper option, making it difficult for our MSMEs to compete.”
He pointed out that Temu is not registered as an Electronic System Operator (ESO) in Indonesia, meaning it is operating illegally and failing to comply with tax provisions.
“The registration process for ESO is considered straightforward. However, to date, there has been no indication from Temu that it intends to comply.”
Prabunindya raised consumer protection concerns, noting that products sold through TEMU are perceived to lack guaranteed quality, as they do not adhere to the regulatory standards set by the Indonesian government. – October 15, 2024