Indonesia Has Repeatedly Rejected Temu's Trademark Registration
Jayson 12 Aug 2024 12:12
Chinese e-commerce platform Temu has tried unsuccessfully to register a trademark in Indonesia because similar brands already operate in Indonesia and government regulations restrict its business model.
The Indonesian Ministry of Law and Human Rights pointed out that Temu's manufacturer-to-consumer (MtoC) model conflicts with Government Regulation No. 29 of 2021, which regulates the distribution of goods, trade facilities and activities, hindering Temu's direct sales plan in Indonesia.
Temu has established itself in the markets of Thailand, Malaysia and the Philippines, offering low-priced goods in a direct sales model to eliminate middlemen and attract consumers.
Despite this, Indonesian Minister of Cooperatives and Small and Medium Enterprises Teten Masduki is concerned that Temu's entry will impact local small and medium-sized enterprises, which may lead to rising unemployment and declining purchasing power, so he suggested blocking it from entering the Indonesian market.
According to the Momentum Works report, as of September 2023, Temu's parent company Pinduoduo Holdings has a cash reserve of US$31.9 billion, far exceeding Shopee and Tokopedia. Temu's profitability and its huge cash reserves show its competitiveness in the global e-commerce field.
The Indonesian government and relevant departments are closely monitoring Temu's developments, aiming to balance foreign investment with the interests of local companies and ensure the healthy and orderly development of the market.
The Indonesian Ministry of Law and Human Rights pointed out that Temu's manufacturer-to-consumer (MtoC) model conflicts with Government Regulation No. 29 of 2021, which regulates the distribution of goods, trade facilities and activities, hindering Temu's direct sales plan in Indonesia.
Temu has established itself in the markets of Thailand, Malaysia and the Philippines, offering low-priced goods in a direct sales model to eliminate middlemen and attract consumers.
Despite this, Indonesian Minister of Cooperatives and Small and Medium Enterprises Teten Masduki is concerned that Temu's entry will impact local small and medium-sized enterprises, which may lead to rising unemployment and declining purchasing power, so he suggested blocking it from entering the Indonesian market.
According to the Momentum Works report, as of September 2023, Temu's parent company Pinduoduo Holdings has a cash reserve of US$31.9 billion, far exceeding Shopee and Tokopedia. Temu's profitability and its huge cash reserves show its competitiveness in the global e-commerce field.
The Indonesian government and relevant departments are closely monitoring Temu's developments, aiming to balance foreign investment with the interests of local companies and ensure the healthy and orderly development of the market.
