The MSME Killer Temu Application Has Entered Indonesia, Here’s the Impact
Jakarta, CNBC Indonesia – The Chinese e-commerce application, Temu, is now available in Indonesia. The public can access the application via the Google Play Store or the Apple App Store.
The emergence of Temu has caused a stir, because the application that is touted as a ‘local MSME killer’ has reaped controversy since it registered several times in Indonesia, but was rejected.
Temu’s concept of selling goods directly from the factory to consumers makes its selling price much cheaper than other e-commerce platforms. This is what worries Temu about triggering unhealthy competition.
Last September, Temu was known to have tried to register its business again with the Ministry of Law and Human Rights (Kemenkumham). This was conveyed by the Minister of Cooperatives, Small and Medium Enterprises (UKM) Teten Masduki some time ago.
However, Teten on several occasions strongly rejected Temu’s entry into Indonesia because it was feared that it would erode local traders.
A similar thing was expressed by the Minister of Communication and Information (Menkominfo) Budi Arie Setiadi. He said he would immediately block the Temu application in Indonesia.
“Of course, if it’s banned, it will definitely be blocked. How can it be blocked without being banned,” said Budi Arie when met some time ago.
According to Budi, Temu has also not applied as an Electronic System Organizer (PSE). This registration is mandatory for platforms from public bodies and private parties, before being used.
Budi explained that platforms from abroad, including Temu, should not destroy domestic MSMEs. According to him, Kominfo plays a role in protecting existing MSMEs.
“We from Kominfo are very interested in helping to protect the fate of our MSMEs. Because there are workers there,” he explained.
Meanwhile, the Director General of Domestic Trade at the Ministry of Trade (Kemendag) Moga Simatupang said that Temu’s entry into Indonesia was inevitable.
He also said that the government did not rule out the possibility of granting permission to Temu if the application, which had failed to register its trademark in Indonesia three times, was able to meet the requirements.
“Permendag (Minister of Trade Regulation) 31 is clear. What requirements must be met to become a PPMSE [are also clear],” explained Moga.
“So, as long as they meet the requirements in accordance with Permendag 31 of 2023 regarding company licensing, coaching, and supervision of PPMSE, yes, we will issue it,” he continued.
Rumors of Temu Acquisition of Bukalapak
Amid the excitement of Temu entering RI, rumors emerged that the Chinese application would acquire Bukalapak. The share price of PT Bukalapak.com Tbk (BUKA) skyrocketed after the rumor, which seemed to follow in the footsteps of TikTok Shop with Tokopedia.
Bukalapak (BUKA) shares on Monday (7/10/2024) trading until 14.00 WIB, were still in a significant strengthening of 26.96% to a position of IDR 146 per share. The share price had strengthened by 30% and reached its highest position at IDR 153 per share intraday.
Rumors of Temu acquiring Bukalapak are being touted as a tactic to smooth its way into the Indonesian market.
CNBC Indonesia has tried to contact Bukalapak to confirm the truth of the rumor, but until this article was published, there has been no official statement from the company.
SOURCE : CNBC INDONESIA
