$Sea (SE.US)$ Indonesia's latest regulatory move to separate...

Indonesia's latest regulatory move to separate social media and commerce is a positive development for Sea, according to Citi Research analyst Alicia Yap.

Referring to news reports on Sept 25, Yap notes that president Joko Widodo had convened a cabinet meeting to discuss issues related to e-commerce as well as to address the growing concerns about how TikTok Shop had negatively impacted micro, small and medium sized business in Indonesia.

Widodo commented that TikTok should only be a social media platform, not a medium for conducting business. The official decision will likely be formally announced on Tuesday, Sept 26.

This is positive for traditional e-commerce players in Indonesia particularly Sea, given the latest competitive intensity between TikTok and Sea's e-commerce arm Shopee, says Yap. She highlights that Sea's share price jumped over 10% during the trading session on Sept 25, reacting positively to the latest regulation.