Reports Say Indonesia Is Cautious about Temu's Entry
Jayson 18 Jun 2024 09:13
It is reported that the Indonesian government is cautious about the entry of Temu, a cross-border e-commerce platform under Pinduoduo.
Last week, the country's Minister of Cooperatives and SMEs Menkop UKM Teten Masduki said at a public meeting of the Sukabumi Senate of Muhammadiyah University: "Temu is connected to various factories in the country, so it may threaten Indonesia's manufacturing industry."
Teten has directly advised President Jokowi not to issue a license to it.
According to him, Indonesian business players cannot compete with Temu because the platform connects various factories, so the product prices are much cheaper.
Issi Karim, director of the Domestic Trade Department of the Ministry of Trade, said that Temu's business model is that producers sell products directly to consumers.
"This does not apply to Indonesia, they will be restricted by government regulations," Issi said.
"(Temu) has not yet applied to the Ministry of Trade, maybe in Malaysia, not Indonesia," Issi said. If Chinese e-commerce companies want to enter Indonesia, they must make a lot of adjustments to their business model.
"There are many things that need to be adjusted," he said.
Last week, the country's Minister of Cooperatives and SMEs Menkop UKM Teten Masduki said at a public meeting of the Sukabumi Senate of Muhammadiyah University: "Temu is connected to various factories in the country, so it may threaten Indonesia's manufacturing industry."
Teten has directly advised President Jokowi not to issue a license to it.
According to him, Indonesian business players cannot compete with Temu because the platform connects various factories, so the product prices are much cheaper.
Issi Karim, director of the Domestic Trade Department of the Ministry of Trade, said that Temu's business model is that producers sell products directly to consumers.
"This does not apply to Indonesia, they will be restricted by government regulations," Issi said.
"(Temu) has not yet applied to the Ministry of Trade, maybe in Malaysia, not Indonesia," Issi said. If Chinese e-commerce companies want to enter Indonesia, they must make a lot of adjustments to their business model.
"There are many things that need to be adjusted," he said.
