After TikTok, The Metemic App Is Considered To Be Able To Threaten Indonesian MSMEs

President Director of Smesco Indonesia Wientor Rah Mada (left) and Special Staff to the Minister for Creative Economy Empowerment Fiki Satari (right). Photo: Theresia Agatha/VOI

JAKARTA - The Ministry of Cooperatives and SMEs (Kemenkop UKM) warned of the dangers of the Temu application made by China against MSMEs in the country. Its existence not only threatens Indonesia because it has penetrated the US to countries in Europe.

President Director of Smesco Indonesia Wientor Rah Mada assessed that Temu could threaten MSMEs because the platform sells products at very low prices, plus the discounted subsidy price given.

Wientor assessed that the platform did not hesitate to provide discounts of up to 90 percent in various countries, most recently in Thailand. In fact, it is indicated by several countries such as the US.

In fact, he said, Temu did not hesitate to give a 0 percent price for its products. So, consumers only have to pay the shipping costs.

"We indicated that in some conditions they gave a 0 percent price. In the US they had given a 0 percent price. So, buyers only paid shipping costs," he said during a media discussion at the UKM Kemenkop office, Jakarta, Tuesday, August 6.

He said his party assumed that the products sold were dead stock items that were not sold in China and were then thrown into other countries. This assumption is strengthened by China's economic condition which is in a surplus of goods.

Therefore, China must remove these products from its country.

"And one way to get it out is through the platform they have. It happens in the US and Europe. So, it's not impossible that it will be done in our country," he said.

According to him, the operation of Temu in the country is very dangerous because goods are likely to be sent directly from their factories in China. Thus, there will be no tiered commission for sellers, resellers, dropshippers or even affiliates in Indonesia like other e-commerce.

"Temuan ini aplikasi jahat dari China yang jika dibiarkan masuk, UMKM kami sudah pasti mati. Ini barang langsung datang dari pabrik," tegasnya.

On the same occasion, the Special Staff of the Minister for Creative Economy Empowerment, Fiki Satari, said that Temu is connected to 80 factories in China and can directly send its products to consumers without a reseller.

Temu has been trying to enter Indonesia since September 2022 by registering its trademark. However, until now, the platform has not succeeded in entering Indonesia because it happens that there are already brand names that have registered first.

Even so, said Fiki, the issue of the brand is in the process of being appealed. So, it is possible that the application from China will still exist.

"Temuan ini kami sudah dapat datanya. Ini platform yang dimbarkan satu platform yang bisa makan perusahaan global sepering level TikTok atau ByteDance," ungkapnya.