His ministry has taken the step to protect domestic micro, small, and medium enterprises (MSMEs) from the threat of the business model implemented by the app.
"As of yesterday, we have blocked the Temu application. It offers a business model (involving the sale of products) from foreign manufacturers directly to Indonesian consumers. Such a practice will crush our MSMEs," he informed in Jakarta on Thursday.
Although the Temu application can still be accessed, transactions can no longer be made on the app, and the request to take down the application from the App Store and Play Store is in process, Setiadi said.
Besides Temu, the minister also highlighted other applications, such as Shein, which follows a similar business concept, namely direct sales from foreign merchants to Indonesian consumers.
"Shein sells fashion and cosmetic products in the same way as Temu. We must protect our MSMEs, such as those in Tasikmalaya, Pekalongan, and other regions," he emphasized.
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According to the minister, the step to block the app has been taken as part of the government's efforts to protect the MSME ecosystem in Indonesia from unfair competition from foreign companies.
"The Electronic System Provider (PSE) for Temu will not be issued, and for other similar applications as well," Setiadi said.
Furthermore, he denied the issue of the acquisition of local e-commerce platforms by Temu and emphasized the government's continuous support to protect the interests of MSMEs in every digital policy.
His ministry has closed access to the Temu application under Ministerial Regulation of the Ministry of Communication and Informatics Number 5 of 2020 concerning Private Electronic System Providers.
Referring to the regulation, the Temu app cannot operate in Indonesia because it is not registered as a PSE.
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Translator: Putri Hanifa, Resinta Sulistiyandari
Editor: Yuni Arisandy Sinaga
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