Indonesia has urged Alphabet's Google and Apple to remove Temu, a Chinese fast fashion e-commerce startup, from their app stores in the nation, a minister said earlier this week.
The decision was intended to safeguard the nation's small and medium-sized businesses from low-cost products offered by PDD Holdings' Temu, communications minister Budi Arie Setiadi told Reuters, despite the fact that authorities are yet to find any transactions involving its residents on the platform.
Temu's quick expansion has drawn criticism from multiple countries for its low-cost business model of sending shipments to customers in China.
Budi described Temu's business approach as "unhealthy competition," as it connects consumers directly with factories in China to significantly lower prices. "We're not here to safeguard e-commerce, but we do protect small and medium-sized businesses. "There are millions who must be protected," the minister stated.
If Temu makes such a move, Jakarta will likewise block its investment in local e-commerce, according to Budi, who added that he is unaware of any such plan. Additionally, Budi stated that the government intends to ask Shein, a Chinese online retailer, for a similar ban.
Last year, Indonesia compelled China's ByteDance social media network TikTok to shut down its online shopfront in order to safeguard the privacy of local users and merchants.
Months later, TikTok agreed to acquire a majority stake in Indonesian digital behemoth GoTo's e-commerce subsidiary in order to maintain its presence in Southeast Asia's largest e-commerce market. On Tuesday, Indonesian e-commerce company Bukalapak.com refuted news of an acquisition by Temu.
According to an estimate by Google, Singapore state investor Temasek Holdings, and consultancy Bain & Co., Indonesia's e-commerce industry could grow to almost $160 billion by 2030, up from $62 billion in 2023.
