Indonesia upholds ban on popular Chinese app Temu

Indonesia has announced it will uphold its ban on the Chinese e-commerce platform Temu, citing concerns that the platform could threaten the country's small businesses. Communications and Informatics Minister Budi Arie Setiadi highlighted that Temu's business model, which enables direct sales from factories to consumers, violates Indonesia's trade regulations that require intermediaries or distributors.

Setiadi warned that allowing Temu to operate would negatively affect the country's economy and society, particularly its small and medium-sized businesses. Owned by PDD Holdings, Temu has faced repeated hurdles in entering the Southeast Asian market, including regulatory issues and trademark conflicts.

Despite these challenges, Temu gained significant traction globally, becoming the most-downloaded app in the US in 2023, surpassing previous leaders like Meta. With its tagline "Shop like a billionaire," the platform now controls nearly 20% of the US market, competing with established American retailers like Amazon, Dollar Tree, and Five Below. However, its direct-to-consumer model has been flagged as incompatible with Indonesian trade rules, prompting the government to continue blocking its operations.