The Director General of Domestic Trade at the Ministry of Trade revealed that the e-commerce platform Temu has not yet obtained a permit to operate in Indonesia.This Chinese e-commerce platform is considered potentially disruptive to the market and could affect the country's micro, small, and medium enterprises (MSMEs).Temu has not yet obtained a license, and he claimed to have coordinated with the Ministry of Communication and Information Technology (Kominfo) to resolve this issue. Temu adopts a factory-to-consumer business model, which he emphasized is not in line with Indonesian policies as it conflicts with government regulations on trade sector implementation.
He stated that any transaction from factory to consumer must go through intermediaries or distributors, and cannot be done directly from factory to consumer. However, he emphasized that the ministry will still closely monitor the application. Previously, the Deputy Minister of Trade stated that any marketplace application must comply with regulations, and basically, without a business license, it is not allowed to operate in Indonesia.
The Director General of Domestic Trade at the Ministry of Trade revealed that the e-commerce platform Temu has not yet obtained a permit to operate in Indonesia.This Chinese e-commerce platform is considered potentially disruptive to the market and could affect the country's micro, small, and medium enterprises (MSMEs).Temu has not yet obtained a license, and he claimed to have coordinated with the Ministry of Communication and Information Technology (Kominfo) to resolve this issue. Temu adopts a factory-to-consumer business model, which he emphasized is not in line with Indonesian policies as it conflicts with government regulations on trade sector implementation.
He stated that any transaction from factory to consumer must go through intermediaries or distributors, and cannot be done directly from factory to consumer. However, he emphasized that the ministry will still closely monitor the application. Previously, the Deputy Minister of Trade stated that any marketplace application must comply with regulations, and basically, without a business license, it is not allowed to operate in Indonesia.