The Indonesian government is considering a ban on Temu, a Chinese online marketplace that facilitates direct transactions between Chinese producers and global consumers. The move comes amid concerns that the platform could negatively impact local small and medium enterprises (SMEs), according to an official statement released on Wednesday.

Fiki Satari, an advisor to the Cooperatives and SMEs Minister, emphasized that allowing Temu to operate in Indonesia could disrupt the country's distribution channels and overwhelm the market with low-cost products shipped directly from China.

“The Temu app from China previously attempted to register its trademark with the Directorate General of Intellectual Property Rights but failed because the name had already been claimed by an Indonesian company. However, we must remain vigilant to prevent its entry,” Fiki said in a press release.

He further explained that the platform poses a significant threat to domestic SMEs. "Allowing Temu to enter Indonesia would jeopardize domestic SMEs, as the platform enables direct transactions between Chinese factories and consumers in the destination country."

Temu operates by enabling direct cross-border transactions, bypassing traditional intermediaries such as local sellers, resellers, or drop shippers. This model allows manufacturers to maintain extremely low prices, creating competition that could severely impact small businesses in countries where the app operates.

The platform has already gained a foothold in the United States, Europe, and several Southeast Asian countries, according to Fiki.

In light of these concerns, Fiki urged the Directorate General of Intellectual Property Rights and the Communication and Informatics Ministry to block Temu’s entry into Indonesia to safeguard the interests of local SMEs.