Indonesia Bans e-Commerce App 'Temu' Due to Extremely Low Prices

The Paper Break Oct 15, 2024
Indonesia Bans e-Commerce App 'Temu' Due to Extremely Low Prices

Previously, we reported that Indonesia banned Apple from selling the new iPhone 16 series until the company made investments in the country. Now, Indonesia has taken similar action against another international company, this time targeting the Chinese e-commerce platform, Temu.

In addition, the Indonesian government has asked Google and Apple to block the Temu app from their respective stores, preventing its download within the country.

Indonesia Bans Temu Due to Extremely Low Prices

According to Reuters, this decision was made proactively before Temu became accessible to Indonesians, aiming to protect the country’s small and medium-sized enterprises (SMEs). Communications Minister Budi Arie Setiadi explained that the ban was due to Temu’s extremely low prices, which could negatively impact local SMEs.

Budi added that Temu's direct connection between consumers and Chinese factories at reduced prices created "unhealthy competition." The government has also stated it will block any potential investments by Temu in Indonesia’s e-commerce market.

He emphasized, "We’re not here to protect e-commerce, but to protect SMEs. There are millions we must safeguard."

Indonesia Previously Banned TikTok Shop for Similar Reasons

This isn't the first time Indonesia has banned an e-commerce platform for offering low prices. Last year, the country blocked TikTok Shop for similar concerns.

Meanwhile, Temu has been operating in Malaysia since September 2023.

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