The Indonesian communication and information ministry has blocked the Temu application, citing non-compliance with regulations and its aim to protect micro, small, and medium enterprises (MSMEs) and consumers, Malaysian national news agency Bernama reported on Tuesday.

Spokesman Prabunindya Revta Revolusi of the ministry said Temu – a Chinese online marketplace that connects products directly from factories to consumers – has raised concerns about potential predatory pricing and price dumping.

In a statement, he warned that if foreign products enter the market at significantly lower prices than those of MSMEs, consumers will certainly choose the cheaper option, making it difficult for our MSMEs to compete.

He noted that Temu was not registered as an electronic system operator (ESO) in Indonesia, meaning it was operating illegally and failing to comply with tax provisions.

The registration process for ESOs is considered straightforward. However, to date, there has been no indication from Temu that it intends to comply.

Prabunindya raised consumer protection concerns, noting that products sold through Temu were perceived to lack guaranteed quality, as they did not adhere to the regulatory standards set by the Indonesian government, the report added.

Earlier, it was reported that Indonesia has asked Alphabet’s Google and Apple to block Temu in their application stores in the country so it cannot be downloaded.

Temu is operated by PDD Holdings, the parent company of the well-known Chinese retailer Pinduoduo. It was reported that Temu has also expanded to Brunei and Vietnam recently.

Maybank sees Bukalapak a potential candidate for TEMU