KIWOOM Morning Equity – 06 July 2026 This document is for information only and for the use of the recipient. It is not to be reproduced or copied or made available to others. FED RATE CUT HOPES LIFT GLOBAL SENTIMENT, INDONESIA TIGHTENS DIGITAL TAX OVERSIGH US MARKET: United States stock markets were closed for holiday on Friday's trading (03/07/26) in observance of Independence Day. Nonetheless, global sentiment remained positive after US employment data released the day before showed a weakening labor market, thereby raising expectations that the Federal Reserve will begin cutting interest rates in the near future. INDONESIA: The Directorate General of Taxes (DJP) has begun to strengthen tax oversight of the digital economy by utilizing transaction data from Tokopedia, Shopee, Lazada, and Blibli to monitor the turnover of online merchants. Through the implementation of PMK No. 37 of 2025, marketplaces are appointed as collectors of Article 22 Income Tax (PPh) of 0.5% on merchant turnover starting August 01, 2026. This transaction data will be used to verify taxpayer turnover, especially business actors with turnovers above Rp4.8 billion per year who do not yet hold Taxable Entrepreneur (PKP) status, while simultaneously expanding the tax base. The government emphasized that this policy is not a new type of tax, but rather a change in the collection mechanism to increase tax compliance, while business actors with turnovers up to Rp500 million per year remain exempt as long as they meet administrative requirements. - In addition, Minister of Finance Purbaya Yudhi Sadewa has given a deadline until September 2026 to the Directorate General of Customs and Excise (DJBC) to complete institutional reforms in accordance with President Prabowo Subianto's directives. The government emphasized that if there are no significant improvements, the option of dissolving DJBC and transferring customs functions to the international inspection company Société Générale de Surveillance (SGS) will be considered. This step was taken following ongoing discoveries of under-invoicing and illegal import practices, and is thus expected to strengthen customs governance, increase business certainty, as well as improve the national investment and trade climate. JCI closed higher by 2.28% to the level of 5,875.78. Throughout trading, JCI moved in the range of 5,805.92 – 5.899.30. Foreign investors recorded a net sell of Rp16.58 billion in the Regular Market, bringing the cumulative year-to-date (YTD) net sell to Rp88.89 trillion. Foreign selling pressure primarily occurred in BBRI, MAPI, TPIA, EMAS, and ISAT, while foreign fund inflows were recorded in BBCA, BMRI, DSSA, BUMI, and ASII. On another side, the Rupiah closed relatively stable in the range of Rp17,960/US$, though it still weakened around 0.3% on a weekly basis. The stability of the rupiah was supported by Bank Indonesia's commitment to safeguard the exchange rate amid ongoing heavy foreign fund inflows into the bond market and SRBI. However, domestic sentiment is still shadowed by the first trade balance deficit since April 2020, a contraction in manufacturing activity, and Fitch Ratings' warning regarding declining foreign exchange reserves. From a technical perspective, as long as JCI has not been able to break through and hold above 5,904 – 5,964, JCI remains vulnerable to testing the support area of 5,806, then 5,744, and subsequently 5,530 if selling pressure increases again. Meanwhile, if the strengthening momentum continues, JCI has the opportunity to test resistance at 5,942 – 5,964, followed by 6,045.