• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

Intel CEO gives investors a reality check

June 23, 2026

Joy Reid Claims Black People Aren’t Excited For July 4th, Juneteenth Is The ‘Real Thing’

June 23, 2026

Not ‘My Place to Use My Stage’ to ‘Tell People How to Think or How to Vote’

June 23, 2026
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Tuesday, June 23
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Joy Reid Claims Black People Aren’t Excited For July 4th, Juneteenth Is The ‘Real Thing’

    June 23, 2026

    Democrats Are Turning Out In Droves — Even In MAGA Country

    June 23, 2026

    Trump’s Midterm Election Rigging Scheme Handed Big Loss

    June 23, 2026

    Senate Passes Major Housing Bill As Citizens Continue To Miss Out On Key Pillar Of American Dream

    June 22, 2026

    Trump Melts Down When Reporters Challenge His Reflecting Pool Vandalism Story

    June 22, 2026
  • Health

    Kidney transplant, livestock disease, Texas: Morning Rounds

    June 22, 2026

    The Hidden Hormone Controlling Your Energy, Mood, And Recovery

    June 22, 2026

    A New Way To Hit Pancreatic Cancer’s Hardest Target

    June 22, 2026

    Ebola Congo: 1,000 cases, 254 deaths, still a search for patient zero

    June 22, 2026

    What GenAI’s Math Breakthrough Means For Medicine

    June 22, 2026
  • World

    Polish President to Strip Zelensky of Top Honor over WW2 Dispute

    June 23, 2026

    Supreme Court Reinstates Murder Conviction In Case Of Etan Patz, Missing NYC Boy

    June 23, 2026

    51 Dead or Missing After Migrant Boat Capsized Off Libya Coast

    June 23, 2026

    World Cup Tourists Share First Impressions Of The U.S.

    June 23, 2026

    Leftist Terrorist With Airline Hijack Links on Party Ballot in Germany

    June 23, 2026
  • Business

    Influential Economic Policy Center Bankrolled By Shady Dating App Founder

    June 19, 2026

    Dem Senator‘s 22-Year-Old Son Raises Eyeballs After Raking In $30 Million Investment

    June 19, 2026

    Jeff Bezos Claims AI Boom Will Actually Lead To Labor Shortages

    June 17, 2026

    Are You Gay Enough To Get A California Utilities Contract? Here’s The Test

    June 17, 2026

    Jersey Mike’s Overtakes Chick-Fil-A As Highest Rated Fast Food Chain

    June 17, 2026
  • Finance

    Intel CEO gives investors a reality check

    June 23, 2026

    China’s 618 shopping festival growth slows sharply as consumer spending malaise persists

    June 23, 2026

    Borrowing need will dictate your interest rate

    June 23, 2026

    52-year-old Outback Steakhouse rival chain closes 24 locations

    June 22, 2026

    Ex-Trump advisor makes bold case for Bitcoin

    June 22, 2026
  • Tech

    Elon Musk’s SpaceX IPO Spurs Momentum for Orbital AI Data Centers

    June 23, 2026

    Netflix’s Mega Podcast Venture Failing to Earn Fans

    June 23, 2026

    Texas Grandma Killed by Tesla Crashing into Home, Driver Claims ‘Autopilot’ Active

    June 22, 2026

    Asbestos Discovered in 1,000 UK Wind Turbines Imported from China

    June 22, 2026

    ‘F**k These Weird Ass Vultures’

    June 22, 2026
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Finance»In Indonesia, E-Commerce App Temu Receives a Frosty Reception
Finance

In Indonesia, E-Commerce App Temu Receives a Frosty Reception

August 21, 2024No Comments4 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
In Indonesia, E-Commerce App Temu Receives a Frosty Reception
Share
Facebook Twitter LinkedIn Pinterest Email

Earlier this month, Indonesia’s Ministry of Trade rejected for the third time an application by the Chinese e-commerce app Temu to register a trademark in the country. The rejection reflects a concern about the app’s business model, which allows factories to ship goods directly to consumers, mostly from China. “Factory-to-consumer is not compatible with our policies. Every activity from factory to consumer must have an intermediary, a distributor,” Isy Karim the Trade Ministry’s director general for domestic trade, said last month. He pledged that the government would “monitor the situation closely.”

Launched in 2022 by Pinduoduo, or PDD Holdings, Temu made an immediate impression on the international e-commerce market. It had amassed over 123 million downloads in the United States as of 2023, with its stock surging past Amazon’s and even displacing Alibaba in China. Temu currently operates in more than 58 countries across the world.

In Southeast Asia, Temu has expanded into markets like Thailand, Malaysia, and the Philippines and has garnered widespread popularity across various age groups, from baby boomers to Gen-Z, thanks to its incredibly low prices. The e-commerce platform’s appeal is amplified by its significant discounts and free shipping for customers willing to wait up to 22 days for delivery.

The majority of products on Temu are sourced from China, often from major production hubs like Guangzhou and Yiwu. Temu’s extensive network of suppliers across different regions in China enables consumers to explore a broad array of product categories from diverse manufacturers.

Temu’s success is largely attributed to its Factory-to-Consumer business model, which bypasses resellers and dropshippers, unlike platforms such as Shopee or Tokopedia.

See also  Baidu earnings report 2Q 2023

The absence of intermediaries in Temu’s supply chain is a key factor in its ability to offer such competitive prices, making it a highly attractive option for budget-conscious shoppers. This direct approach to e-commerce has undoubtedly contributed to Temu’s growing popularity.

In the Indonesian context, however, the authorities have been concerned about the possible impact of Temu. The app presents two significant threats to the Indonesian domestic market. First, its Factory-to-Consumer business model could drastically lower prices for local products, potentially leading to a sharp decline in sales and revenue for local businesses, especially Micro, Small, and Medium Enterprises (MSMEs).

Second, Temu’s producers benefit from access to cheap raw materials and a large workforce, which enables them to produce goods on a massive scale at low costs. These products are then distributed widely through e-commerce platforms, intensifying competition and putting pressure on local businesses. In contrast, local MSMEs face higher raw material costs and minimum wage constraints, making it challenging for them to compete effectively. Additionally, Temu’s robust logistics network enhances its ability to reach customers quickly and efficiently.

Teten Masduki, Indonesia’s minister of cooperatives and small and medium enterprises, has expressed concern that Temu’s model bypasses traditional resellers, affiliates, and distributors, resulting in lower prices but potentially undermining MSMEs and job opportunities in Indonesia.

Fiki Satari, an official in the ministry, has echoed these concerns, suggesting that Temu’s entry into the Indonesian market could be detrimental and should be prevented. He also notes that Temu’s business practices do not align with current Indonesian regulations.

See also  Chevron Announces Leadership Shakeup As Q2 Earnings Tumble Nearly 50%

So far, Indonesia’s government has shown little compunction in wielding the power of the state to protect local business and maintain economic stability. In October, it announced a ban on e-commerce transactions on social media platforms, causing TikTok Shop, a fast-growing e-commerce arm of the popular video-sharing site, to cease its operations. TikTok quickly complied, despite expressing regret for the Indonesian government’s decision.

In a statement announcing the policy, Trade Minister Zulkifli Hasan said that the ban aims to “create a fair, healthy, and beneficial electronic commerce ecosystem by prohibiting marketplaces and social media sellers from acting as producers and facilitating payment transactions on its electronic systems.”

Recently, the Indonesian government has also decided to impose import duties of 100 percent to 200 percent on Chinese textiles, in a bid to protect the domestic textile industry from unfair competition due to China’s overcapacity.

This week, the Ministry of Trade and the Indonesian Anti-Dumping Committee also finalized the anti-dumping duties for ceramics, and the decision now awaits approval from Finance Minister Sri Mulyani. The proposed anti-dumping duties will range from 40-50 percent.

By taking these proactive protectionist measures, Indonesia hopes to protect its local businesses and economy from potential adverse effects – and to avoid the political backlash that such economic disruption would likely entail. Despite three attempts to secure operating licenses, Indonesia has yet to permit Temu’s entry into the domestic market. Its past practice suggests that for all its likely popularity with the Indonesian public, it is unlikely to do so.

App ecommerce frosty Indonesia Receives Reception Temu
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Intel CEO gives investors a reality check

June 23, 2026

China’s 618 shopping festival growth slows sharply as consumer spending malaise persists

June 23, 2026

Borrowing need will dictate your interest rate

June 23, 2026

52-year-old Outback Steakhouse rival chain closes 24 locations

June 22, 2026
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Elina Svitolina Aims for a Wimbledon Singles Final Against Jabeur or Sabalenka

July 13, 2023

How Lindsey Horan Got Mad, and How That Got the U.S. Even

July 27, 2023

Mark Zuckerberg’s family office ICONIQ leads investment in Pigment

June 11, 2023

Kremlin Takes Control of Chechen Force as Wagner Group Refuses

June 15, 2023
Don't Miss

Intel CEO gives investors a reality check

Finance June 23, 2026

AI stock investors have essentially been trained to follow a rule to invest in businesses…

Joy Reid Claims Black People Aren’t Excited For July 4th, Juneteenth Is The ‘Real Thing’

June 23, 2026

Not ‘My Place to Use My Stage’ to ‘Tell People How to Think or How to Vote’

June 23, 2026

Elon Musk’s SpaceX IPO Spurs Momentum for Orbital AI Data Centers

June 23, 2026
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,386)
  • Entertainment (5,257)
  • Finance (3,886)
  • Health (2,326)
  • Lifestyle (1,893)
  • Politics (3,653)
  • Sports (4,616)
  • Tech (2,296)
  • Uncategorized (4)
  • World (5,164)
Our Picks

Amazon Reportedly Floats Plan To Show Tariff Price Increases To Shoppers — Karoline Leavitt Calls It ‘Hostile’ Move

April 29, 2025

American Forces Shoot Down Turkish Drone Hovering near U.S. Base in Syria

October 9, 2023

Israeli Soldiers Adopt ‘Inglourious Basterds’ Facial Hair for War

October 29, 2023
Popular Posts

Intel CEO gives investors a reality check

June 23, 2026

Joy Reid Claims Black People Aren’t Excited For July 4th, Juneteenth Is The ‘Real Thing’

June 23, 2026

Not ‘My Place to Use My Stage’ to ‘Tell People How to Think or How to Vote’

June 23, 2026
© 2026 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.