Indonesia's MSCI Overhang Persists: Reform Execution Now Takes Center Stage Latest MSCI Announcement on the August Review For the August 2026 review, MSCI decided to maintain several restrictions on Indonesian equities, namely: MSCI Decision — August 2026 Review 1. Freezing all increases in Foreign Inclusion Factor (FIF). 2. Freezing increases in Number of Shares (NOS). 3. Not adding Indonesian stocks to the MSCI Investable Market Indexes (IMI). 4. Not applying any upward migration across size segments, including from MSCI Small Cap to MSCI Standard Index. 5. Continuing to remove stocks identified under the High Shareholding Concentration (HSC) framework 6. Starting to use the 1% shareholder disclosure data to adjust free float estimates when necessary. 7. Providing further information regarding the treatment of the Indonesian market before the November 2026 review. KIWOOM ADVICE Within the next one month, it would be very helpful if regulators could present before-and-after evidence of the implementation of the new rules, such as: • Real free-float improvements in problematic stocks. • Concrete follow-up on stocks included in the HSC list. • Disciplinary action / investigation against issuers or parties indicated to have high ownership concentration or abnormal transactions, including those involved in coordinated trading behavior. • Consistent and verifiable use of the 1% shareholder ownership data. • Real improvement in disclosure, liquidity, and price discovery. In short, MSCI and global investors need to see that since the issue first emerged, Indonesia has not only responded with rules and statements, but has truly implemented the policies consistently and produced real evidence. If measurable changes can be shown before November, Indonesia's chance of maintaining Emerging Market status will become stronger. However, if the reforms remain merely administrative without real improvement in free float, liquidity, and price discovery, the MSCI overhang will continue to hold back JCI's rerating. KIWOOM SEKURITAS INDONESIA