Lebih Ngeri Dari Tiktokshop, e-Commerce Temu Bakal Ancam UMKM RI?

Summary

The Temu app, a Chinese e-commerce platform, has sparked concerns in Indonesia as it directly connects consumers with manufacturers, offering significantly lower prices than local retailers. This threatens small and medium enterprises (UMKM), as businesses fear the disruption of their market share and jobs. Despite being banned by the government, Temu is still accessible in Indonesia, prompting officials to reinforce regulations to protect local businesses. The Indonesian government is working to ensure that foreign platforms comply with local laws, aiming to maintain fair competition and support local businesses in the face of global e-commerce challenges.

Takeaways

• 😀 Temu is a Chinese e-commerce app that has recently gained attention in Indonesia for its potential impact on small and medium-sized businesses (UMKM).
• 😀 Temu operates similarly to TikTok Shop and Shopee but connects producers directly to consumers, leading to significantly lower prices for products.
• 😀 Indonesian entrepreneurs, especially in the local fashion and product industries, fear that Temu could harm their businesses by offering products at much lower prices.
• 😀 One example showed a product being sold on Temu for a third of the price found in Indonesian markets, highlighting the price discrepancy.
• 😀 Despite being banned in Indonesia, the Temu app can still be accessed through Google Play Store and Apple App Store.
• 😀 Indonesian officials have expressed concern about foreign e-commerce platforms like Temu disrupting the local economy and harming UMKM.
• 😀 Minister of Communication and Information, Budi Ari, emphasized the importance of protecting UMKM and ensuring foreign platforms do not harm the local market.
• 😀 The Director-General of Domestic Trade, Mugi Sima Tapung, stated that Temu has not met Indonesia's regulatory requirements, particularly regarding cross-border trade.
• 😀 There are rumors that Temu may attempt to enter the Indonesian market through an acquisition of the local e-commerce platform, Bukalapak.
• 😀 The Indonesian government continues to work on blocking Temu's entry into the country while striving to protect local businesses and ensure fair competition in the digital economy.

Q & A

What is the application 'Temu' and how does it impact Indonesia's market?

Temu is an e-commerce application from China that connects producers directly to consumers, bypassing distributors. This results in much lower prices, which could harm local businesses, particularly small and medium-sized enterprises (SMEs) in Indonesia, as they might not be able to compete with the significantly lower prices offered by Temu.

What concerns are raised by Indonesian small business owners regarding the entry of Temu?

Indonesian small business owners are concerned that the arrival of Temu could disrupt their businesses, as consumers might opt to purchase goods directly from the app at lower prices, leading to a significant reduction in demand for locally-produced products.

Why is Temu's entry into Indonesia controversial?

Temu's entry is controversial because it has not met the regulatory requirements set by the Indonesian government. Its presence in Indonesia could potentially harm the local economy, particularly SMEs, by offering products at prices that local businesses cannot match, thus threatening their survival.

What is the stance of the Indonesian government on Temu's presence in the country?

The Indonesian government, through the Ministry of Communications and Informatics, has explicitly stated that Temu is not allowed to enter Indonesia due to its potential to harm local businesses. The government is committed to protecting Indonesian SMEs and is working to block Temu unless it meets local regulations.

What action is the Indonesian government taking to prevent Temu from operating in Indonesia?

The Indonesian government is actively trying to block Temu by enforcing existing regulations and ensuring that the app complies with Indonesia's trade laws. The government is also collaborating with other authorities to prevent its entry, citing concerns over the negative impact on local businesses.

What specific regulations does Temu fail to comply with in Indonesia?

Temu fails to meet the requirements outlined in Indonesia's Trade Minister Regulation No. 31 of 2023. These regulations include stipulations on cross-border trade, such as the need for products to be worth at least $100, as well as broader guidelines aimed at protecting local industries and ensuring fair competition.

How does Temu's pricing structure differ from local Indonesian retailers?

Temu offers products at prices significantly lower than those found in local Indonesian markets. For example, a product available on Temu is priced at IDR 118,691, compared to IDR 405,000 for a similar item sold in Indonesia, creating a substantial price gap that local retailers cannot compete with.

What impact could Temu's entry have on the local Indonesian workforce?

If Temu were to dominate the market, it could lead to job losses in the local retail and manufacturing sectors. Local businesses, unable to compete with Temu’s lower prices, might close down, resulting in layoffs and negative consequences for the Indonesian workforce.

What are the expectations of local Indonesian businesses regarding the government’s action on Temu?

Local businesses hope that the government will continue to block Temu from entering Indonesia, as they believe it would severely harm traditional markets and local enterprises. They are calling for fair competition, where prices are reasonable and businesses can survive.

What are the long-term concerns related to foreign platforms like Temu entering Indonesia?

The long-term concerns include the potential destruction of local industries, the loss of jobs, and the inability of small businesses to compete with foreign platforms that can offer products at unsustainably low prices. There is also the issue of ensuring that local companies have the opportunity to thrive in a fair market.