Google and Apple have been requested by Indonesia to block the Chinese fast-fashion app Temu from their app stores. The country’s minister said that this move will protect its small and medium-sized businesses. According to a report by the news agency Reuters, Indonesia’s Communications Minister Budi Arie Setiadi stated that the move is intended to prevent Indonesian consumers from downloading the app and gaining access to the extremely low-priced goods offered by PDD Holdings-owned Temu.
This preemptive action comes even though Indonesian authorities have not yet found any evidence of Indonesian residents making purchases on the platform. Temu’s rapid growth and its business model, which relies on shipping inexpensive goods directly from China, has also sparked concerns in several countries.
What the Indonesian minister said about Temu
Setiadi criticised Temu’s business model and said it to be “unhealthy competition,” as it connects consumers directly with factories in China to significantly reduce prices.
“We’re not here to protect e-commerce, but we protect small and medium enterprises. There are millions we must protect,” the minister added.
Setiadi also noted that Indonesia will also block any investment by Temu in local e-commerce if it makes such a move. However, he has not heard of any such plan, the minister highlighted.
He also said the government plans to request a similar block for Chinese shopping service Shein. However, a Shein spokesperson said that the company do not have operations in Indonesia.
Challenges in Indonesia’s e-commerce market
Indonesia has a history of taking strong measures to protect its e-commerce market. Last year, the government forced TikTok, owned by China’s ByteDance, to shut down its e-commerce service within the country to safeguard local merchants and user data. This move ultimately led TikTok to acquire a majority stake in Indonesian tech giant GoTo‘s e-commerce unit to maintain its presence in the Southeast Asian market.
More recently, Indonesian e-commerce platform Bukalapak.com refuted rumours of a potential acquisition by Temu. These developments highlight the competitive landscape of Indonesia’s e-commerce sector, which is projected to reach a value of $160 billion by 2030, according to a report by Google, Temasek Holdings, and Bain & Co.
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