Fast fashion setback: Indonesia wants to block popular Temu shopping app

The Indonesian government appears to have taken steps to potentially restrict online marketplace Temu's presence in its region, asking Google and Apple to ban the app.

While Temu is a relatively new e-commerce platform that has rapidly expanded its operations globally since its launch in 2022, initial scrutiny and criticism in various markets, particularly regarding data privacy concerns, has not prevented it from becoming a multi-billion dollar e-commerce giant, hot on the heels of similar fast fashion giants, like Shein.

The primary issue seems to be that Temu is not officially registered to operate in Indonesia, and highlights the importance of companies adhering to local regulations when entering new markets.

The Indonesian government is also protective of local businesses, stating in an announcement: "Based on experience in several countries, the application from China is detrimental to local MSMEs as well as consumers. The quality of products sold by Temu also does not meet quality standards, thus harming consumers or buyers." By ordering Apple and Google to remove the Temu app from their stores, the Indonesian government is leveraging its regulatory power over digital marketplaces. This approach has been used by other countries in similar situations.

If implemented, this ban could significantly impact Temu's ability to operate in Indonesia, which is a large and growing e-commerce market in Southeast Asia and might prompt other countries to scrutinise Temu's operations more closely, potentially leading to similar actions elsewhere.