Indonesia Requests Apple and Google to Block Temu
On Oct. 11, Indonesia’s communications minister announced that the nation had requested Google and Apple to block Temu from their app stores to safeguard small businesses.
Temu, a China-based ultra-low-price e-commerce app, is currently operational in only a few Southeast Asian countries and 79 countries globally. A report by Momentum Works indicated that its gross market value in Southeast Asia in 2023 was only $100 million compared to $16.3 billion in the United States.
In the U.S., Temu has faced criticism for its ties to forced labor. The Chinese Communist Party’s persecution of Uyghurs and other ethnic minorities in Xinjiang, a significant cotton-producing region, is linked to forced labor.
By publication time, Google, Apple, and Temu had not responded to inquiries.
The minister expressed concerns that Temu’s business practices would lead to “unhealthy competition” and emphasized the need to protect small and medium enterprises.
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Small businesses play a significant role in Southeast Asian economies, contributing 40 percent to the GDP, according to consulting firm YCP.
Indonesia’s e-commerce sector is projected to grow to around $160 billion by 2030 from $62 billion in 2023 as per a report by Google, Temasek Holdings, and Bain & Co.
In Indonesia, 99 percent of businesses are small, making it the largest e-commerce market in the region. Thailand, the second largest, saw Temu launch in July.
Authorities mentioned that they have not observed Indonesian transactions on the Temu app yet, and the action taken is preemptive.
The minister stated that they would oppose any plans by Temu to enter the Indonesian market through investment. Last year, Indonesia compelled ByteDance and its TikTok app to shut down its e-commerce functions, leading TikTok to acquire a majority stake in Indonesian e-commerce company GoTo to continue operating in the market.
Last month, Indonesia expressed interest in joining the Trans-Pacific trade pact, which comprises countries like Australia, Canada, Malaysia, Singapore, and others, excluding China. The pact aims to boost low-tariff trade among member countries, with China expressing a desire to join in 2021, which was discouraged by Australia in 2023.
Several countries have implemented trade barriers against China, citing the CCP’s “predatory” pricing tactics aimed at eliminating global competitors.
Reuters contributed to this report.
