PT.

Ecart Webportal Indonesia (the Company) is a foreign-invested company engaged

in the e-commerce business as Lazada Indonesia. The Company's head office is
located in a commercial area, precisely at the address: Gedung Capital Place Office
Tower Lantai 20 - 21, Jl. Jendral Gatot Subroto Kav. 18, RT. 006 RW. 001, Kelurahan
Kuningan Barat, Kecamatan Mampang Prapatan, Kota Jakarta Selatan 12710, DKI Jakarta
- Indonesia. The head office unit is leased from another party.

Meanwhile, the Company's previous address was at Gedung Agro Plaza Lantai 9, Jl.
Hajjah Rangkayo Rasuna Said Kav. X-2 No. 1, Kelurahan Kuningan Timur, Kecamatan
Setia Budi, Jakarta Selatan 12950, DKI Jakarta - Indonesia.

Based on our investigation, the Company began operating in 2014, operating in the
IT support field for Lazada Indonesia's web portal and mobile apps managed by PT.
Ecart Services Indonesia.

Then in 2017, there was an operational merger between the Company and PT. Ecart
Services Indonesia. So since then, the Company has been operating in web portals
and mobile apps to operate e-commerce under the name 'Lazada Indonesia'.

Through Lazada, the Company sells all kinds of products through an online platform
through the Lazada website and application. Customers can buy various products such
as electronic households, mobile phones, fashion, food and beverages, toys,
computers, and accessories.

The customers are end-users and retailers in the domestic market. Several
categories and leading brands of products offered by Lazada are, such as:

Mobile phone and tablet: Apple, HTC, Xiaomi, Samsung, etc.

Computers and laptops: Acer, HP, Lenovo, Logitech, etc.
Electronic equipment: Panasonic, Philips, Sony, etc.
Camera: Canon, Fujifilm, Kingston, Nikon, etc.
Home appliances: Kenwood, Sharp, Tefal, Toshiba, etc.
Health and beauty: Hugo Boss, L'Oreal, Nivea, etc.
Fashion: Casio, Titan, Caterpillar, Converse, Mayonette, Nike, etc.
The Company telah memiliki sekitar 9 gudang utama dan 3 gudang khusus untuk barang
berukuran besar (bulky warehouse). The Company juga telah bekerja sama dengan 8,000
kurir dan mitra logistik.

In its operation, Lazada is supported by some suppliers, such as PT. Pandu Siwi
Sentosa, PT. Tiki Jalur Nugraha Ekakurir, PT. First Logistic, distributor of
computer and accessories PT. Samsung Electronic Indonesia, distributor of
smartphones PT. Erajaya Swasembada Tbk, distributor of clothing products, etc.

In addition, in its internal operations in the IT field, the Company is supported

by PT. Kudo Teknologi Indonesia, so that e-commerce systems are not only accessible
online but also offline for the sellers. This supplier also supports IT operations
such as making web portals and mobile apps, data storing and other related IT
activities.

In 2014, Lazada started to offer an affiliation program, in which a seller

(merchant) takes affiliation with Lazada for marketing their products/services
through the website. Here, the seller will have a specific link to track
transaction made through the website.

Lazada offers 2.5 - 6% commission fee, depending on the category of products

transacted through the link. Registration for this affiliate program is free of
charge. There are currently over 65,000 sellers already joining.

Meanwhile, to support its business, in March 2016 Lazada built a 6,200 m� warehouse
in Surabaya Industrial Estate Rungkut (SIER). The warehouse facility is expected to
support the small and medium business players to sell their products through the
marketplace platform belonged to Lazada.

In April 2016, the e-commerce giant from China, Alibaba, took strategy to dominate
the market in Southeast Asia by acquiring 51% of Lazada shares worth USD 1 billion
(some IDR 13 trillion). In line with the acquisition, Alibaba has started to
integrate their services with Lazada services, starting with the use of the Alipay
payment system.

In addition, Lazada collaborates with offline vendors in Tanah Abang, Central

Jakarta. In March 2018, the Company and sellers in Tanah Abang Market officially
signed a Memorandum of Understanding (MoU) for cooperation to boost the scale of
merchant business in Tanah Abang. This cooperation invites Tanah Abang Market
sellers to open an online store at Lazada.co.id.

In March 2018, Alibaba has increased its investment of USD 2 billion to Lazada.
This makes Lazada's business grow and also spur us to continue growing. This fund
will be used to accelerate the growth of Lazada in terms of penetration, logistics,
and technology.

Pada August 2018, the Company meluncurkan produk platform baru yang diberi nama
LazMall. LazMall merupakan mal virtual para pemegang merek (brand) bisa membuka
toko resminya di Lazada. Hingga saat ini sudah ada lebih dari 1,000 pemegang merk
yang tergabung di LazMall. Berdasarkan riset Kantar pada Maret 2019, produk yang
paling banyak dibeli melalui LazMall adalah fesyen, elektronik, dan barang konsumsi
atau Fast Moving Consumer Goods (FMCG).

Selain itu, the Company juga menyediakan menyediakan beragam fitur dan layanan
untuk meningkatkan pesanan. Di antaranya LazGame, Lazada Live Streaming, dan
sebagainya.

Sejalan dengan hal itu, the Company juga bekerja sama dengan 12 perusahaan global
di bidang gaya hidup, teknologi, dan fesyen untuk memperkuat bidang online
retailnya. Lewat kerja sama yang disebut Joint Business Partnerships (JBP)
tersebut, para pemegang merek bisa memanfaatkan infrastruktur teknologi dan
logistik Lazada.

In March 2019, in order to complete the e-commerce business ecosystem, the Company
has launched a digital wallet owned by Lazada or better known as Lazada Wallet.
Especially in Indonesia, the Lazada Wallet in question is Lazada Credit.

In order to enter the Indonesian market according to regulations, Alipay must work
with a business group of commercial bank (BUKU) 4 with a core capital of more than
IDR 30 trillion.

Several banks that have expressed interest in cooperating with Alipay such as PT
Bank Central Asia Tbk, PT Bank Negara Indonesia Tbk, PT Bank CIMB Niaga Tbk, and PT
Bank Rakyat Indonesia Tbk.

In April 2019, Lazada and Bhinneka announced business collaboration in Indonesia's

e-commerce industry. Both e-commerce launches Bhinneka Official Store. Bhinneka
Official Store provides six main product categories, namely technology and gadgets,
lifestyle, music store, all about home, gaming station and sports. Of the six
categories, 70% will be dominated by gadgets, laptops, and computers.

Berdasarkan riset iPrice, pada Kuartal IV 2019, Lazada menempat posisi 3 sebagai
situs e-commerce yang paling banyak dikunjungi. Posisi pertama yaitu Shopee dan
kedua adalah Tokopedia.
Sementara itu, di Asia Tenggara, Shopee dan Lazada mengantongi total pengunjung
aktif bulanan terbanyak di Asia Tenggara selama 2019. Shopee mengantongi 2.06 juta
kunjungan dan Lazada 1.84 juta kunjungan.

Secara umum, sepanjang tahun 2017 hingga 2019, the Company masih terus mampu untuk
meningkatkan pendapatannya seiring dengan meningkatnya jumlah pengunjung dan
penjualan dalam setiap tahunnya. Jumlah penjual di platform the Company sudah
meningkat lebih dari 50% secara tahunan pada 2019. Pada 2019, the Company juga
telah melayani konsumen di 500 kota dan Kabupaten di Indonesia. Selain itu, pada
setiap akhir tahun merupakan transaksi tertinggi the Company seiring dengan event
Hari Belanja Online Nasional 12.12 (Grand Year End Sale) dari 10-12 Desember 2019,
platform tercatat mengalami kenaikan Gross Merchandise Value (GMV) sebanyak 18 kali
lebih banyak dari hari biasa.

Memasuki kuartal II 2020, the Company masih beroperasional dengan normal. Adanya
pandemic Covid-19 menyebabkan peningkatan transaksi dan juga jumlah pembuatan aku
baru di platform Lazada. Hal ini terjadi seiring dengan meluasnya penerapan
physical distancing, sehingga belanja online mengalami peningkatan. The Company
fokus pada penyediaan barang-barang kebutuhan sehari-hari bagi konsumen, seperti
kebutuhan pokok, hand sanitizer, masker, suplemen, dll.

Sejak adanya pandemi ini, the Company telah melakukan berbagai bentuk langkah
proaktif, untuk memastikan semua konsumennya agar tetap mendapatkan pengalaman end-
to-end berbelanja yang aman dan juga nyaman.

The Company juga bekerja sama dengan banyak brand untuk memastikan kebutuhan akan
produk-produk kesehatan masyarakat terus terpenuhi. Selain itu, untuk bahan makanan
sehari-hari, the Company juga telah menggandeng BULOG untuk memastikan ketersediaan
produk-produk terkait selalu ada.

Apabila pelanggan merasakan ketidaknyamanan dalam berbelanja, Chatbot Lazada, CLEO,

juga akan siap menjawab semua pertanyaan dari pelanggan selama 24 jam.

Pada tahun 2020, the Company berkomitmen untuk menjangkau 8 juta usaha kecil dan
menengah untuk go online melalui platformnya. The Company juga berfokus untuk
meningkatkan layanan pemesanan dan pengiriman barang lintas negara (cross-border).
Berdasarkan informasi yang kami peroleh, pada 2019 transaksi lintas negara di
Lazada tumbuh 4.6 kali lipat atau 460 % sejak 2016.

In April 2020, the Lazada application has been downloaded by around 100 million
users through Google Playstore. This amount makes Lazada become one of the largest
online sales platforms in Indonesia, even Southeast Asia.

In addition, Lazada received the 'E-Commerce Platinum Award' for Best Consumer
Choice of Indonesia for Business to Customer category in Indonesia E-Commerce Award
from idEA which was held on December 1, 2016.

In addition, in 2019 fase 2, the lazada.co.id site won Top Brand Indonesia ranked 1
with a percentage of 31.6%, still the most superior compared to other heavy
competitors such as Tokopedia.com (ranked 2), Shopee.co.id (ranked 3),
Bukalapak.com (ranked 4), and Blibli.com (ranked 5).

As additional information, 50% of total incomes of Lazada Group is located in

Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Malaysia, are coming
from Indonesia.
The Company first started operating in 2014 and was engaged in data processing
activities, especially in serving the Lazada's web portal. But in 2017, along with
its operational merger with PT. Ecart Services Indonesia, the Company is currently
the e-commerce operator, Lazada Indonesia, both through a web portal and mobile
apps.

Sepanjang tahun 2017 hingga 2019, the Company terus mampu meningkatkan
pendapatannya seiring dengan meningkatnya jumlah transaksi pada platformnya. Selain
itu, layanan the Company juga telah menjangkau di berbagai wilayah di Indonesia.

Memasuki kuartal II 2020, the Company masih beroperasional dengan normal. Adanya
pandemic Covid-19 memberikan dampak positif bagi the Company pasalnya jumlah
transaksi dan pembuatan akun baru mengalami peningkatan. Selain itu, transaksi
penjualan produk kebutuhan sehari-hari, hand sanitizer, dan masker kesehatan
mengalami peningkatan.

Peningkatan tersebut disebabkan karena penerapan physical distancing yang dilakukan

oleh masyarakat sehingga belanja online mengalami peningkatan. Selain itu, the
Company terus melakukan langkah-langkah proaktif untuk memastikan ketersediaan
produknya tersebut.

The Company juga terus melakukan inovasi layanan baru untuk platformnya agar dapat
memberikan pengalaman end-to-end yang aman serta nyaman bagi customernya. Dengan
pengguna layanan digital yang terus meningkat di Indonesia, maka dalam jangka
panjang diprediksi the Company akan mampu untuk meningkatkan kinerjanya.

Berdasarkan pertimbangan tersebut, maka kami menyimpulkan risiko kredit the Company
pada level Medium.