Indonesia’s ban on Temu won’t spread across Southeast Asia: analysts

Authorities in Indonesia earlier this month implemented the ban to protect the country’s micro, small and medium-sized enterprises (MSMEs) and prevent cheap products from flooding the country.

“Indonesia’s economic structure is unique, with MSMEs [serving] as a backbone of the economy and major source of employment, which draws particular attention from the government,” said Li Jianggan, chief executive of Singapore-based venture outfit Momentum Works.

More than 64 million MSMEs contributed more than 60 per cent to Indonesia’s gross domestic product and accounted for 97 per cent of employment, according to 2022 data from the country’s Coordinating Ministry for Economic Affairs.