Indonesia’s trade officials said Temu’s business model conflicts with local government regulations, which require a distributor or intermediary to be present in the product’s journey from factory to consumer. According to a report by CNN Indonesia, the Pinduoduo sister app has yet to apply for a license to operate locally, said Isy Karim, the director general of Indonesia’s domestic trade. So far, Temu ships Chinese-manufactured goods at especially low prices to over 50 overseas markets on six continents, but it has entered only two countries in Southeast Asia, the Philippines, and Malaysia. The Indonesian government will continue to “closely monitor” the potential entry of Temu, as local officials worry that the Chinese online retailer poses a threat to the island country’s small- and medium-sized merchants, the report added. [CNN]
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