Indonesia’s ban on Temu won’t spread across Southeast Asia: analysts

Indonesia’s core issue with Temu is how a large volume of cheap Chinese goods entering the country could impact its manufacturing sector

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In Southeast Asia, Temu has established operations in the Philippines, Malaysia, Thailand, Vietnam and Brunei. Photo: Shutterstock

Wency Chenin ShanghaiandAnn Caoin Shanghai

Published: 8:00pm, 16 Oct 2024

Indonesia’s recent initiative to ban Temu, the popular discount-shopping platform run by Pinduoduo owner PDD Holdings, is not expected to be adopted by other economies in Southeast Asia over the near term, according to industry analysts.

Authorities in Indonesia earlier this month implemented the ban to protect the country’s micro, small and medium-sized enterprises (MSMEs) and prevent cheap products from flooding the country.

The government has also asked Apple and Google to block Temu from their respective domestic app stores because it was not a registered e-commerce platform in the country, according to a report last Thursday by online newspaper Jakarta Globe.

“Indonesia’s economic structure is unique, with MSMEs [serving] as a backbone of the economy and major source of employment, which draws particular attention from the government,” said Li Jianggan, chief executive of Singapore-based venture outfit Momentum Works.

A bird’s-eye view of Jakarta, capital of Indonesia. Photo: Shutterstock

More than 64 million MSMEs contributed more than 60 per cent to Indonesia’s gross domestic product and accounted for 97 per cent of employment, according to 2022 data from the country’s Coordinating Ministry for Economic Affairs.