Chinese-owned Temu to face compliance issues in Indonesia, local officials warn

The platform’s business model of selling from manufacturers directly to consumers is in conflict with domestic regulations that require “an intermediary” or “a distributor”, Isy Karim, the director general of the domestic trade department in the country’s trade ministry, said last week, according to CNN Indonesia.

Karim said the government would closely watch the situation, adding that Temu has not yet applied for an e-commerce licence to run its business in the market.

The potential entry of fast-growing Temu into one of the biggest e-commerce markets in Southeast Asia has been monitored by other local officials, who have voiced concerns over jobs and consumer prices.