Temu supply chain expands in Southeast Asia amid Indonesian ban: Will others follow?
18 Oct 20243 min read
Summary
- Temu’s operations in Southeast Asia have been disrupted following Indonesia’s decision to ban the platform in October, citing its negative impact on local micro, small and medium enterprises. Authorities argued that Temu’s low-cost, direct-from-China supply chain model undercut domestic traders, prompting Google and Apple to remove the app from their Indonesian stores.
- Despite the setback, Temu continues to expand across the region, launching in Vietnam and Brunei. However, early rollout challenges—such as limited language support and payment options in Vietnam—highlight the platform’s uneven regional execution. In contrast, Brunei’s launch shows greater localization, signaling Temu’s intent to establish a broader Southeast Asian supply chain footprint.
- Industry experts believe Indonesia’s move is unlikely to trigger similar bans across the region. Varying economic structures and regulatory priorities make other markets less likely to follow suit, though Temu still faces tough competition from established regional players like Shopee and Lazada as it seeks a foothold in Southeast Asia’s e-commerce landscape.
0Discount-shopping platform Temu is facing hurdles in Southeast Asia (SEA) following its recent ban in Indonesia in early October, disrupting the Temu supply chain.Authorities in the country implemented the ban to protect micro, small and medium sized enterprises against cheap products on the platform. On October 11, Indonesia also asked Google and Apple to block Temu in their app stores to prevent the app from being downloaded.According to the Indonesian government, Temu’s express delivery model kicks local players out of the supply chain. This is because it allows foreign companies to have extremely low prices that squeeze small traders in Indonesia.
Will SEA follow Indonesia’s lead?
Despite Indonesia’s decision to ban Temu, industry analysts suggest that this move is unlikely to trigger similar actions across SEA in the near future.Indonesia’s regulators have specifically targeted cross-border e-commerce platforms to prevent an oversupply of cheap goods that could harm local industries. However, to experts, SEA has different economic and regulatory environments that reduce the likelihood of similar measures to the Temu supply chain.
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“Indonesia’s economic structure is unique, with MSMEs serving as a backbone of the economy and a major source of employment, which draws particular attention from the government,” said Li Jianggan, CEO of Singapore-based Momentum Works in South China Morning Post.
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