Indonesian authorities recently implemented a ban to protect the country’s micro, small, and medium-sized enterprises (MSMEs) and prevent the influx of cheap products. As part of this initiative, the government has requested Apple and Google to block the Temu app from their respective domestic stores due to its unregistered status as an e-commerce platform in Indonesia.
According to Li Jianggan, CEO of Singapore-based venture outfit Momentum Works, Indonesia’s economic structure heavily relies on MSMEs, which serve as the backbone of the economy and a significant source of employment. With over 64 million MSMEs contributing more than 60% to the country’s GDP and accounting for 97% of employment, these businesses play a crucial role in Indonesia’s economic landscape.
In a recent move to protect Indonesian MSMEs, authorities enforced a ban on cheap products and unregistered e-commerce platforms, such as the Temu app. With MSMEs being the backbone of the economy, Indonesia aims to safeguard these businesses that contribute significantly to employment and GDP. This strategic decision underscores the country’s unique economic structure, where over 64 million MSMEs hold a pivotal role in driving economic growth.
Through this initiative, Indonesia reaffirms its commitment to supporting and promoting the growth of local businesses, ensuring their sustainability and competitiveness in the global market.
Source link