KIWOOM Morning Equity – 24 August 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. GLOBAL RISKS RISE AHEAD OF JACKSON HOLE; INDONESIA’S CURRENT ACCOUNT DEFICIT IN FOCUS US MARKET: Wall Street closed higher on Friday's trading (08/21/26), halting a week-long slide after US economic data showed business activity growing at its fastest pace in more than four years. S&P 500 rose 0.43%, Nasdaq 100 gained 0.43%, while Dow Jones strengthened 0.98%. The gains were mainly supported by solid economic data, with mega-cap tech stocks also strengthening, such as Alphabet +1.1%, Microsoft +0.4%, and Meta +0.8%. Conversely, semiconductor stocks moved mixed, with Nvidia falling 1%, Micron -0.8%, and Intel -2.2%, while Walmart weakened more than 10% over the week after disappointing results pressured the company's outlook. INDONESIA: The current account deficit (CAD) is projected to widen to 2.5%–3.0% of GDP in 2026, from 0.11% of GDP in 2025. In Q2 2026, the CAD had reached US$12.5 billion, or 3.3% of GDP, sharply higher than US$3.6 billion, or 1.0% of GDP, in the previous quarter. The widening CAD is expected to be driven by stronger imports amid the government's pro-growth agenda, while exports could potentially be pressured by weak global demand, particularly from China, as well as geopolitical and trade tensions. This condition could potentially pressure the external position and the rupiah, especially if not offset by strong capital inflows. - In addition, the capital and financial account swung to a surplus of US$12.0 billion in Q2 2026, from a deficit of US$4.8 billion in the previous quarter, supported by increased direct and portfolio investment. However, capital flows remain vulnerable to rising global uncertainty and risk-off sentiment, so the combination of a widening CAD and reliance on capital flows poses a risk to Indonesia's Balance of Payments. Meanwhile, the government is considering the option of extending the pioneer industry tax holiday until 2027, with tax expenditure projected to reach Rp8.11 trillion in 2027. The implementation of the Global Minimum Tax (GMT) could potentially reduce the effectiveness of the tax holiday, so the government is considering shifting incentives toward a refundable tax credit scheme to keep investment attractiveness intact. JCI closed up 0.37% at the 6,525.69 level. Throughout Friday's (08/21) trading, JCI moved in a range of 6,507.43 – 6,551.96. Foreign investors booked a net buy of Rp992.64 billion in the Regular Market. Foreign fund inflows were mainly directed through BBRI, BBCA, BMRI, TPIA, and BBNI, while the largest foreign selling pressure was recorded in ISAT, ASII, BUMI, AMMN, and BRMS. Meanwhile, the Rupiah strengthened to around Rp17,720 per US Dollar, heading toward a third consecutive weekly gain, supported by weakness in the US Dollar Index, which stood near its lowest level in several months. As a result, sentiment toward the Rupiah improved somewhat, reinforced by domestic credit growth reaching 13.58% YoY in July, exceeding Bank Indonesia's target of 8%–12% for the end of 2026. Technically, JCI stood above the EMA10 (6,408.23), EMA20 (6,334.09), and EMA50 (6,303.83). This condition indicates the bullish trend remains intact and short-term momentum tends to be positive. The RSI (14) stood at 63.48, still below the overbought area of 70, so bullish momentum remains fairly strong and room for further gains remains open. If JCI can hold above the 6,462 – 6,408 area, the strengthening could potentially continue toward 6,602 (minor FR 161.80%), with further resistance around 6,723 (gap area). Conversely, should a correction occur and JCI fail to hold 6,462, the index could potentially test 6,408 (EMA10), then 6,394 (EMA20) as the next support. KIWOOM RESEARCH advises buy accumulation can be done gradually during healthy corrections around the EMA10, while a trailing stop can be applied should JCI start losing the 6,462 level as an important support.