Business
Indonesia’s Ban on Temu to Safeguard MSMEs from Influx of Cheap Chinese Goods: A Move Unlikely to Echo Across Southeast Asia, Analysts Say
Analysts believe that Indonesia's prohibition on Temu will not extend to the rest of Southeast Asia. The primary concern for Indonesia regarding Temu is the potential effect on its manufacturing industry due to the influx of inexpensive Chinese products.
Earlier this month, Indonesian officials enacted a prohibition aimed at safeguarding the nation's micro, small, and medium-sized businesses (MSMEs) from an influx of inexpensive imports.
"Indonesia's economic framework is distinctive, with small and medium-sized enterprises (SMEs) functioning as the economic cornerstone and a primary job provider, thus garnering special focus from the government," stated Li Jianggan, the CEO of Singapore's venture firm, Momentum Works.
According to 2022 figures from Indonesia's Coordinating Ministry for Economic Affairs, over 64 million micro, small, and medium enterprises (MSMEs) were responsible for over 60% of the country's GDP and made up 97% of the workforce.
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