Southeast Asia's Landscape Unchanged by Indonesia's Ban on Temu E-Commerce

Wednesday, 16 October 2024, 12:00

Southeast Asia is unlikely to follow Indonesia's lead in banning Temu, the discount-shopping app from Pinduoduo's PDD Holdings. Analysts emphasize that each country's economic landscape varies, particularly regarding micro, small, and medium-sized enterprises, and complex local regulations will prevent a widespread adoption of similar bans. Indonesia's unique economic makeup, focusing on MSMEs, plays a crucial role in its regulatory approach.
Scmp
Southeast Asia's Landscape Unchanged by Indonesia's Ban on Temu E-Commerce

Indonesia's Ban Explained

Indonesia recently implemented a ban on the popular discount app Temu, operated by Pinduoduo's PDD Holdings, to safeguard its micro, small, and medium-sized enterprises (MSMEs). Authorities are even asking Apple and Google to remove the app from local app stores due to its unregistered status.

Economic Justifications

  • Li Jianggan, CEO of Momentum Works, highlights the essential role of MSMEs in Indonesia's economy, contributing over 60% to the GDP and employing 97% of the workforce.
  • Despite banning Temu, analysts believe it won't spur similar actions in other Southeast Asian nations, whose governments face unique economic considerations.
  • Previous regulations prompted major platforms like Shopee and Lazada to readjust their strategies for the Indonesian market.

Regional Implications

Discussions around regulatory implications reveal parallels between Indonesia's position and China's recent e-commerce developments. The Politburo in China has raised concerns regarding unhealthy competition and price wars, aiming to promote more sustainable market practices.

What Lies Ahead for E-Commerce

While Temu continues to operate in Southeast Asia, it faces real hurdles, particularly in regulatory compliance and local partnerships.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


Related posts


Newsletter

Get the most reliable and up-to-date financial news with our curated selections. Subscribe to our newsletter for convenient access and enhance your analytical work effortlessly.

Subscribe