Indonesia bans the Chinese app that was most-downloaded app in US in 2023

| TOI Tech Desk | TIMESOFINDIA.COM | Oct 8, 2024, 14:38 IST

Indonesia upholds its ban on the e-commerce platform Temu, citing... Read More

Indonesia said it will continue its ban on the operations of the e-commerce platform Temu, citing concerns that it could harm the country's small businesses. According to a report in Channelnewsasia, Communications and Informatics Minister Budi Arie Setiadi stated that Temu's business model, which involves direct sales from factories to consumers, violates Indonesian trade regulations requiring intermediaries. He emphasized that allowing Temu to operate would negatively impact the economy and society, particularly small and medium-sized businesses.

Tired of too many ads? app in the US in 2023. The Chinese shopping app took over spots previously held by the US tech giant Facebook parent Meta. With its tagline “Shop like a billionaire,” Temu has reportedly captured almost 20% of the US market share, posing a challenge to traditional American retailers such as Amazon.com, Dollar Tree Inc and Five Below Inc.

Temu's business model against Indonesian rules

Temu's business model of selling products directly from factories to consumers is said to be against Indonesia’s trade regulation requiring an intermediary or distributor, the Trade Ministry’s domestic trade director-general Isy Karim said previously. Minister Budi said that allowing Temu in Indonesia could hurt the economy and society.

Temu’s application became a topic of discussion after the company appeared at the 2024 E-commerce Expo held on Sep 24 and 25 in Greater Jakarta.

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