Jakarta, Indonesia Sentinel — The Indonesian government recently blocked Temu application from China, citing concerns over its potential impact on local small and medium-sized enterprises (SMEs). The platform operates a direct-to-consumer business model, connecting manufacturers directly with buyers, allowing Temu to offer products at extremely low prices that local businesses find hard to match. The government’s actions aim to prevent Temu from undercutting Indonesian retailers and disrupting local markets.
In addition to banning Temu, Indonesian officials also announced plans to block similar applications, including Shein, if they pose threats to local businesses. This stance has resonated in neighboring Vietnam, which has similarly started scrutinizing these platforms’ business practices.
Vietnam’s Ministry of Trade recently warned that it would block Temu and Shein’s internet domains and applications in the country unless both companies register their operations with the government before the end of November. The requirement reflects a broader concern about the impact of these Chinese-based e-commerce giants on Vietnam’s market. Both Shein and Temu frequently attract users with massive discounts and prices far below local retailers, making it difficult for Vietnamese businesses to remain competitive.
During a recent cabinet meeting, Deputy Minister of Trade Nguyen Hoang Long addressed the government’s concerns about the platforms. He highlighted the urgency of regulating these applications to protect the local market, as reported by Reuters on November 11, 2024.
“After issuing this notice, if these platforms do not comply, the Ministry of Industry and Trade will work with relevant agencies to block both the applications and internet domains [for Shein and Temu],” Long stated in an official post-meeting release.
Indonesia Urges Apple to Block Temu App from the App Store
Shein has been operational in Vietnam for some time, building a significant user base in the country. In contrast, Temu, a subsidiary of China’s e-commerce conglomerate PDD Holdings, only began selling in Vietnam last month.
Both platforms have rapidly expanded their presence across Southeast Asia, drawing interest and controversy for their business models, which often emphasize speed and affordability. Yet, these practices have sparked concerns about the impact on local markets, leading authorities in multiple countries to consider protective measures. As other nations observe Indonesia and Vietnam’s stance, the future may hold increased regulatory scrutiny for global e-commerce giants entering Southeast Asia.
(Becky)
