JAKARTA, RAKYAT NEWS – The Indonesian Ministry of Communication and Informatics (Kominfo) has announced its intention to block online shopping applications from China, including Temu and Shein. Minister Budi Arie Setiadi emphasized the need to protect local micro, small, and medium enterprises (MSMEs) from foreign competition.

Shein previously operated in Indonesia, entering the market in 2018 but leaving in 2021.

According to Shein’s official site, they ceased operations on July 29, 2021. Founded in 2008 under the name ZZKKO in Nanjing, China, Shein was established by Xu Yangtian, who had a background in marketing and search engine optimization.

Initially, Shein focused on selling wedding dresses, and later expanded into women’s clothing. The brand rebranded itself as Shein in 2015 and launched its shopping app, rapidly gaining popularity during the COVID-19 pandemic, positioning itself alongside major fashion retailers like Zara and H&M.

By 2022, Shein was operational in over 150 countries and had become one of the most searched clothing brands worldwide. The company, which originally had its headquarters in Guangzhou, China, moved to Singapore in 2022, reporting revenues of $24 million, comparable to those of Zara and H&M.

Shein’s valuation was estimated at $64 billion in 2023, down from its peak of $100 billion in April 2022. The company plans to go public, considering an initial public offering (IPO) on the London Stock Exchange, shifting from its initial plan to list in New York. Regulatory requirements from the Chinese Securities Regulatory Commission necessitate that companies registered abroad obtain approval for their listing intentions.