JAKARTA, Oct 11 (Reuters) - Indonesia has asked
Alphabet's Google and Apple ( AAPL ) to block Chinese
fast fashion e-commerce firm Temu in their application stores in
the country so it cannot be downloaded, a minister said on
Friday.
The move was intended to pre-emptively protect the country's
small and medium-sized businesses against cheap products being
offered by PDD Holdings' ( PDD ) Temu, communications minister
Budi Arie Setiadi told Reuters, even though authorities have not
found any transactions yet by its residents on the platform.
Temu's rapid growth has triggered scrutiny over its low-cost
business model of sending parcels to customers from China by
several countries.
Temu's business model, which connects consumers directly
with factories in China in order to significantly reduce prices,
is "unhealthy competition," Budi said.
"We're not here to protect e-commerce, but we protect small
and medium enterprises. There are millions we must protect," the
minister said.
Jakarta will also block any investment by Temu in local
e-commerce if it makes such a move, Budi said, adding he has not
heard of any such plan.
Budi also said the government plans to request a similar
block for Chinese shopping service Shein.
Temu, Apple ( AAPL ) and Google did not respond to requests to
comment.
Shein said they do not have operations in Indonesia, a
company spokeperson said.
Indonesia forced China's ByteDance social media platform
TikTok to close its e-commerce service in the country last year
to protect local merchants and users' data.
Months later, TikTok agreed to buy a majority stake in
Indonesian tech conglomerate GoTo's e-commerce unit in
order to stay in Southeast Asia's biggest e-commerce market.
On Tuesday, Indonesian homegrown e-commerce Bukalapak.com
denied reports about an acquisition plan by Temu.
Indonesia's e-commerce industry is set to expand to about
$160 billion by 2030 from $62 billion in 2023, according to a
report by Google, Singapore state investor Temasek Holdings and
consultancy Bain & Co.