Heaptalk, Jakarta — In a press release on Monday (06/10), Minister of Cooperatives and SMEs Teten Masduki stated that besides TikTok Shop, a Chinese app called Temu can potentially harm MSMEs.
In addition to its very low prices, the platform could eliminate numerous jobs related to the online trade distribution chain. Moreover, the app connects factories directly with consumers. “That way, many jobs in distribution will be lost. There will no longer be resellers and affiliates, and the products will be very cheap since they are mass-produced in factories,” Teten said.
Furthermore, the Chinese app is already present in 58 countries worldwide. He is concerned that if this app enters Indonesia, it could damage the Indonesian market, similar to the impact of TikTok Shop some time ago.
He added, “Even though we have regulations in Minister of Trade Regulation No. 31 of 2023, which states that PMSE cannot cross-border sell products under US$100. I am worried as TikTok violated the regulations and was allowed by the government for two years. I am only warning as the economic condition of MSME businesses is declining.”
“If competition for MSME products is further intensified with products from China, which are factory-made and certainly cheap, it will undoubtedly be tough,” he concluded.