KIWOOM Morning Equity – 11 September 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. US PPI BEATS EXPECTATIONS, OIL PRICES SURGE; INDONESIA WATCHES FISCAL PRESSURE US MARKET: Wall Street closed lower on Thursday's trading (09/10/26), after US Producer Price Index (PPI) data showed producer inflationary pressure higher than expected. S&P 500 fell 0.58% to 7,591.70, Nasdaq Composite weakened 0.65% to 26,081.72, while Dow Jones Industrial Average corrected 0.60% to 52,064.10. Headline PPI rose 0.4% MoM and 5.4% YoY in August, above the 5.3% YoY consensus, prompting the market to again increase attention to the Fed's monetary policy direction. INDONESIA: World crude oil prices broke through US$100/barrel again, with Brent reaching US$105.24/barrel (+3.98%) and WTI US$100.06/barrel (+4.17%) on Thursday (09/10/26). The rise in oil prices could potentially increase pressure on the state budget, particularly through higher energy subsidies and compensation, given the state budget's oil price assumption stands at around US$90/barrel. However, fiscal space is considered still fairly adequate, reflected in a state budget deficit of 0.91% of GDP through July 2026 and around 0.95% of GDP in August, so the government does not yet see a need to increase the fuel subsidy quota. - In addition, Finance Minister Purbaya Yudhi Sadewa said the government could use state budget reserve funds to support a program of gradually opening bank accounts for the public, with a target of up to 200 million accounts. This program is expected to only begin implementation in 2027, as it still requires preparation and data integration among Dukcapil (Population and Civil Registration), banking, and Bank Indonesia (BI). Purbaya also estimates the budget needed may not reach Rp11 trillion, since people who already have accounts at designated banks would not need to open new ones. BRI will handle account opening nationally, while BSI will serve the Aceh region. This program could potentially expand financial inclusion, though its impact on the state budget will depend on the number of accounts realized and the government's assignment mechanism. JCI closed down 1.33% at the 6,589.34 level on Thursday's trading (09/10), after moving in a range of 6,585.56 – 6,712.50. Foreign investors booked a net sell of Rp747.51 billion, with foreign fund inflows mainly directed into ANTM, AADI, CUAN, PTBA, and ENRG, while the largest selling pressure was recorded in BBCA, BBRI, ISAT, DSSA, and INDY. In the foreign exchange market, the Rupiah stood around Rp17,530/USD, after briefly strengthening below Rp17,450/USD in the previous session. Market sentiment was also pressured by oil prices breaking through US$100 per barrel, given Indonesia is a net oil importer, which could potentially increase pressure on fiscal conditions. Technically, JCI again formed a bearish candle after failing to hold its strength above the 6,700 area, closing at the 6,589.34 level. JCI stood below the EMA10 (6,602.75), but still held above the EMA20 (6,529.42) and EMA50 (6,419.84), while the RSI (14) fell to 57.63, indicating bullish momentum is starting to weaken though the uptrend remains intact. Should JCI fail to break back through the EMA10 at 6,603, the correction could potentially continue toward 6,529 – 6,520, the nearest support area as well as the EMA20 and uptrend line. If it holds, JCI has room to rebound and test 6,673 – 6,723, with the next resistance at 6,859. Conversely, should it break down below 6,520, the correction could potentially continue toward 6,420 (EMA50), with the next support at 6,377. KIWOOM RESEARCH advises a wait & see approach while monitoring the 6,529 – 6,520 area, while investors who have already profited can apply a trailing stop or gradual profit-taking should that support be breached.