1. GoTo and TikTok have formed a strategic partnership in Indonesia aimed  at serving micro, small, and medium-sized enterprises (MSMEs)

2. Analysts suggest that Shopee, the e-commerce arm of Sea Limited, may  face increased pressure from the combined forces of GoTo's Tokopedia and  TikTok in Indonesia.

3. Sea Limited's U.S.-listed shares closed 5.33% lower at $37.87 after the  announcement, with concerns about Shopee's profitability.

4. As part of the partnership, TikTok will take a controlling stake of  75.01% in an enlarged Tokopedia entity, investing $1.5 billion over  time.

5. The deal is seen as a strategic move by GoTo and TikTok to strengthen TikTok Shop's presence in Indonesia's e-commerce space.

6. The announcement follows Indonesia's ban on e-commerce on social media  platforms in October, which affected TikTok's e-commerce service.

7. TikTok Shop will gain full operational control and legitimacy for operating e-commerce, posing a challenge to local incumbents.

8. Indonesia, with 125 million TikTok users, represents the largest  Southeast Asian market and the second-largest global market for TikTok.

9. Analysts suggest that Shopee needs a clear strategy to compete, and the key to winning might not solely be in e-commerce.

10. GoTo's Jakarta-listed shares initially dropped 20% after the  announcement but rebounded over 3% on Tuesday, reflecting mixed investor  sentiments.