Indonesia has requested that Google and Apple block the Temu app from their app stores in order to protect small businesses, according to the country’s communications minister. The minister stated that Temu’s business practices would create “unhealthy competition” and emphasized the need to safeguard small and medium enterprises. However, representatives for Google, Apple, and Temu have not yet responded to inquiries regarding this matter.
The e-commerce industry in Indonesia is projected to reach approximately $160 billion by 2030, a significant increase from $62 billion in 2023. This information comes from a report by Google, Singapore state investor Temasek Holdings, and consultancy Bain & Co. Despite this growth potential, authorities claim they have not observed any transactions made by Indonesians on the Temu app. As a result, blocking its access is seen as a preemptive measure.
Furthermore, the communications minister expressed opposition towards any plans by Temu to enter the Indonesian market through investment. He cited an example from last year when Indonesia compelled China-based ByteDance and its TikTok app to close its e-commerce function within the country. Instead of exiting completely, TikTok opted to acquire a majority stake in Indonesian e-commerce company GoTo.
In addition to these developments within its digital landscape, Indonesia recently submitted an official request for membership in the Trans-Pacific trade pact. This agreement includes countries such as Australia, Brunei Canada Chile Japan Malaysia Mexico New Zealand Peru Singapore UK Vietnam but notably excludes China.
it remains unclear how Google and Apple will respond to Indonesia’s request regarding blocking access to the Temu app on their platforms. The government’s aim is clear: protecting small businesses amidst an expanding e-commerce industry with potential economic benefits for years ahead.