Heaptalk, Jakarta — The Ministry of Trade has the authority to issue permits for the Temu app to operate in Indonesia. This Chinese marketplace app has long been debated regarding its entry into the local market.
Moga Simatupang, the Director General of Domestic Trade at the Ministry of Trade, stated that the Ministry could give the green light for the Temu app to operate in Indonesia. “To obtain an operating permit in the country, Temu must meet the requirements according to applicable regulations,” Moga said on Monday (10/07).
Currently, the regulations governing electronic commerce are outlined in Minister of Trade Regulation Number 31 of 2023 on Business Licensing, Advertising, Guidance, and Supervision of Business Actors in Trade Through Electronic Systems (PPMSE). Moga added, “As long as they comply with the requirements in Minister of Trade Regulation Number 31 of 2023 related to business operations, guidance, and PPMSE supervision, we will issue the permit.”
Conversely, if the app refuses to comply with the rules, the Indonesian government will not allow its entry into the country. However, the government acknowledges that the digital era is causing the trade sector to evolve, and the presence of such apps is unavoidable. “We just need to manage the governance of electronic commerce so that domestic industries can compete, and local platforms can also compete,” Moga emphasized.
In contrast to the Ministry of Trade, the Ministry of Cooperatives and SMEs prefers that this marketplace app not operate in Indonesia. Temmy Satya Permana, Acting Deputy for SMEs at the Ministry, stated that the Ministry is actively working to ensure that the app cannot be launched in Indonesia. “For Temu, our stance at the Ministry is consistent; we are working to prevent Temu from opening in Indonesia,” Temmy said.
The Ministry of Cooperatives and SMEs views Indonesia’s large market share compared to neighboring countries as giving this app significant potential for growth. Consequently, the presence of this app raises concerns about threatening Micro, Small, and Medium Enterprises (MSMEs) and large industries.
