KIWOOM Morning Equity – 16 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. COOLING INFLATION LIFTS RISK APPETITE AS INDONESIA PREPARES ITS INTERNATIONAL FINANCIAL CENTER US MARKET: Wall Street closed higher in Wednesday's trading (15/07/26) amid volatile movements, supported by US producer inflation (PPI) data that was lower than expected, thereby easing concerns over an interest rate hike by the Fed in the near term. S&P 500 rose 0.4% to 7,572.40, Nasdaq Composite strengthened 0.6% to 26,269.23, and Dow Jones Industrial Average added 0.3% to 52,658.64. The strengthening was led by Magnificent Seven stocks which were able to offset weakness in the semiconductor sector. INDONESIA: The government is preparing the Indonesian International Financial Center (PFII) as a global financial hub by offering various incentives, including 0% tax rates for up to 50 years, legal certainty, as well as regulatory simplification for investors. This policy is aimed at increasing Indonesia's competitiveness against international financial centers like Singapore, Dubai, and Labuan, while simultaneously attracting back investments that have so far been placed through special purpose vehicles (SPVs) abroad. The PFII will also become a special zone that facilitates the establishment of investment banks, insurance companies, pension funds, to various other financial services institutions to deepen the domestic financial market. - On another side, the proportion of Government Securities (SBN) ownership by Bank Indonesia (BI) increased to 27.41% as of July 10, 2026 (vs 22.61% at the end of 2025), while banking and foreign investor ownership continued to decline. This step shows BI's growing role in maintaining stability in the bond market amid weak investor demand. Although able to dampen volatility, this condition also reflects the rising dependence of government financing on the central bank, as reflected by the 10-year SBN yield which remains high at 7.28%. On another side, the government is optimistic that market sentiment will improve post the credit rating affirmation by S&P, which is expected to encourage a gradual return of foreign capital inflows to the Indonesian financial market. JCI closed higher by 0.04% to the level of 6,041.97. Throughout trading, JCI moved in the range of 6,007.17 – 6,081.23. Foreign investors again recorded a net sell in the Regular Market of Rp160.43 billion, while across all markets foreign investors posted a net sell of Rp153.02 billion, bringing the cumulative year-to-date (YTD) net sell to Rp92.04 trillion. Foreign selling pressure primarily occurred in TLKM, BRMS, ASII, BBCA, and ENRG, while foreign fund inflows were recorded in BMRI, ANTM, BBRI, TPIA, and RANS. Meanwhile, the Indonesian Rupiah exchange rate weakened to around Rp18,080 per US dollar on Wednesday after briefly strengthening below Rp18,000 in the previous session. This decline occurred because ongoing crude oil price increases put pressure back on the rupiah with rising concerns over Indonesia's energy import bills as a net oil importer. Technically, JCI is still moving above the EMA10 and EMA20, continuing to move sideways. JCI still has the opportunity to continue its strengthening toward the range of 6,121 – 6,171. If it is able to break above that area, the strengthening has the potential to continue toward the dynamic resistance of the EMA50 around 6,273. Meanwhile, the immediate support sits at 5,987 and 5,949, with the next strong support at 5,898 if selling pressure rises again. The RSI (14) slightly increased to the 51.07 level, indicating that bullish momentum is still strong. KIWOOM RESEARCH advises investors to remain trend following by applying a trailing stop to lock in profits that have formed. Adding positions (averaging up) can be done gradually if JCI is able to maintain its momentum above the 5,987 area and continue its strengthening toward the 6,121 – 6,171 resistance.