This Chinese company was not allowed to enter the Indonesian market.

The Director General of Domestic Trade at the Ministry of Trade revealed that e-commerce platform Temu has not yet received a license to operate in Indonesia.The e-commerce platform from China is seen as having the potential to disrupt the market and affect micro, small and medium enterprises (MSME) in the country.Temu has not yet obtained a license and claims to have coordinated with the Ministry of Communications and Information Technology (Kominfo) to resolve the issue.Temu has adopted a factory-to-consumer business model, which he emphasizes is not in line with Indonesian policy as it conflicts with government regulations on the implementation of the trade sector.

He said any transaction from factory to consumer must be done through an intermediary or distributor and not directly from factory to consumer. He emphasized, however, that the department would still be closely monitoring the application. Earlier, the Deputy Minister of Trade said that any marketplace application must comply with regulations, basically if there is no commercial license, it is not allowed to operate in Indonesia.