Recently, the Indonesian government announced that it will ban Temu, a cross-border e-commerce platform under Pinduoduo, from entering the Indonesian market. Hurry up and follow the 18 supply chain to take a look!
Indonesia's Minister of Information and Communications said that they have blocked the Temu app since October 9 and that Temu users will no longer be able to access and use the app. It said the move was to protect local SMEs from unfair competition from foreign companies.
In the eyes of the Indonesian government, temu provides a door for foreign low-priced goods to enter the Indonesian market, and if low-cost goods are proliferated, it will seriously hinder the development of local small and medium-sized enterprises, so they need to completely block this door.
In addition, the Indonesian government has indicated that it will not issue an Electronic System Provider (PSE) license for temu in the future. It is precisely because of the lack of this license that Temu is legally prohibited from operating in the Indonesian market. It is understood that temu has applied for a license to register as an Electronic System Provider (PSE) on three occasions, but ultimately failed.
As a government agency with a strong focus on protecting local industries, the Indonesian government is not at all polite to foreign e-commerce platforms.
It was also at this time last year that TikTok was banned by the Indonesian government, ordering it to prohibit direct transactions on Indonesian social media platforms and to carry out e-commerce-related businesses. As a result, TikTok Shop was also forced to shut down for a period of time at that time.
In order to break the situation and get rid of the impact of the ban, TikTok Shop spent a huge amount of money to acquire 75.01% of Tokopedia's shares, merging TikTok Shop's e-commerce business with Tokopedia to form PT Tokopedia.
It's unclear if temu will follow TikTok Shop's lead, but the "closed door" in the Indonesian market does highlight the potential pitfalls of temu on the road to rapid expansion. Since its official launch in the United States market at the end of 2022, temu's footsteps have spread to more than 70 countries and regions around the world.
But such attitudes as those in the Indonesian market are not uncommon. In July this year, temu was officially launched in Thailand, but according to Thailand media reports, the Thailand government is tightening the supervision of temu to protect local small and medium-sized enterprises. The European Union has also sharpened its knives against Temu, repeatedly pressuring Temu to comply with European consumer protection regulations.
On the road of temu's rapid expansion, sudden "sudden braking" and "cooling" are sometimes not all bad, better grinding market access policies and creating a platform plan tailored to local conditions may make temu's development path more stable and better.
This article is provided by 18 Supply Chain, and for more up-to-date information, please refer to the official account "18 Supply Chain Cross-border Logistics".
Editor of this article: Xiaoba