What: Indonesia’s government has asked Google and Apple to block the Chinese e-commerce firm Temu from their local app stores, fearful of the economic impacts of its consumer-to-factory model.

Why is it important: The Indonesian government is concerned about unhealthy competition that may affect its small and medium enterprises given Temu’s model of connecting consumers directly with factories in China, giving them access to an array of cheap products.

Rapidly growing, Indonesia’s e-commerce sector was worth USD 62 billion in 2023, and is projected to expand to around USD 160 billion by the end of the decade. This move is the latest in a series of regulations aimed to “create a fair, healthy and beneficial electronic commerce ecosystem.” Last year, the government banned e-commerce transactions on social media platforms - a move that was widely seen as a response to the sudden popularity of TikTok Shop. It was also recently announced that the Indonesian government will impose import tariffs on a range of consumer goods including textiles, electronics, and cosmetics from China.

Indonesia asks Apple, Google to block Chinese e-commerce app Temu