Indonesia has asked Google and Apple to block Chinese fast fashion e-commerce firm Temu from their app stores to protect its micro, small, and medium-sized enterprises (MSMEs), a minister said on Oct. 11. The move is a preemptive measure, even though Indonesia residents have yet to make transactions on Temu’s platform, Communications Minister Budi Arie Setiadi told Reuters.
Temu, owned by PDD Holdings, has faced global scrutiny for its low-cost business model, which connects consumers directly with factories in China, leading to significant price reductions. Setiadi emphasized that this approach creates “unhealthy competition” and threatens Indonesia’s MSMEs. “We’re not here to protect e-commerce, but we protect small and medium enterprises. There are millions we must protect,” Setiadi said.
According to Setiadi, Jakarta would prevent any investment by Temu in local e-commerce, though there have been no reports of such plans. The Indonesian government has also requested a similar block for the Chinese shopping service Shein.
Indonesia, Southeast Asia’s largest economy, previously forced ByteDance-owned TikTok to shut down its e-commerce service last year. However, TikTok later agreed to purchase a majority stake in Indonesia’s GoTo Gojek Tokopedia company, enabling it to stay in the market.
A report by Google, Temasek Holdings, and Bain & Co. projects Indonesia’s e-commerce sector to grow to $160 billion by 2030, up from $62 billion in 2023. According to government data, the country’s economy heavily relies on MSMEs, which contribute over 60 percent of its gross domestic product and account for 97 percent of employment.
Temu has not yet responded to requests for comment. The app remains available in Indonesia, though it does not support local shipping or transactions in Indonesia’s local currency, the rupiah.