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E-commerce App Temu Not Yet Licensed, Says Domestic Trade DG

20 June 2024 12:05 WIB

TEMPO.CO, JakartaDirector General of Domestic Trade at the Trade Ministry, Isy Karim, disclosed that the e-commerce platform Temu has yet to obtain a license to operate in Indonesia. This online marketplace app from China is seen as having the potential to disrupt the market and affect the micro, small, and medium enterprises (MSMEs) in the country.

“[Temu] does not have a license yet until now,” Isy said when met at the Trade Ministry office in Central Jakarta on Wednesday, June 19. He claimed to have coordinated with the Ministry of Communications and Information Technology (Kominfo) to address the issue.

Isy acknowledged that Temu operates under a factory-to-consumer business model. He stressed that such a business model is not compatible with Indonesian policies, as it conflicts with the Government Regulation on the implementation of the trade sector.

Any transaction from factory to consumer, Isy explained, must be connected through an intermediary or distributor. “So it cannot go directly from the factory to the consumers.”

He stressed, however, that the ministry would closely monitor the application.

Previously, Deputy Minister of Trade Jerry Sambuaga said that any marketplace application must comply with regulations. “Basically, if it doesn't have a permit as commerce, it’s not allowed [to operate here],” Jerry said at the Trade Ministry office on Thursday, June 13.

HAN REVANDA PUTRA

Editor’s Choice: Indonesia's Trade Minister Reacts to Chinese E-commerce Temu

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