Sea could increase take-rates in Indonesia after TikTok, says JPMorgan

JPMorgan says the firm’s channel checks indicate that TikTok Indonesia has raised commissions in Indonesia by up to 290 basis points. The changes in Indonesia follow TikTok increasing take-rates in across Southeast Asia along with reduced shipping vouchers and increased subscription fees for its shipping fee program, the analyst tells investors in a research note. The firm believes the adjustments by TikTok leave room for Sea Limited’s Shopee Indonesia to increase take-rates after Shopee materially increased take-rates in other countries. However, Shopee could still face higher competition in Indonesia after the integration of TikTok and Tokopedia as TikTok could look to gain market share, says JPMorgan. The firm keeps an Overweight rating on Sea with a $70 price target.