Heaptalk, Jakarta — The government officially banned the Chinese marketplace app Temu from operating in Indonesia through the Ministry of Communication and Informatics (Kominfo). The app’s business model is considered non-compliant with the country’s regulations regarding trade and the MSME ecosystem, including predatory pricing.
According to the Ministry’s Director General of Public Information and Communication, the marketplace directly connects products from manufacturers to consumers, enabling predatory pricing or price dumping. If left unchecked, this could potentially threaten the sustainability of local MSMEs.
“If foreign products enter at prices much lower than MSME products, consumers will naturally choose the cheaper option. This makes it difficult for our MSMEs to compete,” said Prabu Revolusi in his written statement in Jakarta (10/13).
The Ministry also believes that the presence of such an app can disrupt the MSME business ecosystem, especially when foreign product prices are extremely low, posing a threat to small businesses’ survival. Therefore, the government has taken firm action to protect domestic MSMEs. As it is unregistered as an electronic system operator in Indonesia, it is easier for the government to block it. Prabu said, “When an app is not registered as an electronic system operator, there is a wide-open possibility for it to be blocked.”
Very low user traffic
The electronic system operator registration process is considered easy, but the app developers do not intend to comply. “If the electronic system operator is non-compliant, especially operating illegally without going through customs, we have to act to protect the interests of MSMEs and consumers in Indonesia,” Prabu added.
The Ministry observed that user traffic for this app in Indonesia remains very low. However, if there is an increase in traffic and a significant impact, the Ministry will take immediate action. Kominfo will continue to review the app based on legal, user traffic, and data security parameters, including predatory pricing practices.
Additionally, Prabu highlighted the consumer protection aspect, noting that the quality of products sold through the app is not guaranteed. He said, “When the product prices are extremely low, the quality cannot be guaranteed. This poses a risk to consumers.”
To provide consumer safety, Kominfo coordinates with relevant ministries, such as the Ministry of Cooperatives and SMEs and the Ministry of Trade, to assess potential threats from non-compliant electronic system operators. Furthermore, the Ministry is open to collaborating with various parties to ensure Indonesia’s digital landscape complies with regulations.
