KIWOOM Morning Equity – 13 October 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. GEOPOLITICAL TURMOIL DRIVES ENERGY PRICES HIGHER, INDONESIA’S MIDDLE-CLASS PURCHASING POWER IN FOCUS US MARKET: US stock futures moved mixed on Tuesday (13/10/26) ahead of quarterly earnings reports from several major banks that could potentially set the tone for the Q3 earnings season. S&P 500 futures fell 0.1% and Nasdaq 100 futures weakened 0.2%, while Dow Jones futures rose slightly by 0.05%. Investors are watching earnings reports from JPMorgan, Goldman Sachs, Citigroup, and Wells Fargo, as well as Johnson & Johnson and UnitedHealth. In addition, existing home sales data and statements from several Federal Reserve officials are also market focuses ahead of the release of September inflation data on Wednesday. In the previous session, S&P 500 fell 0.06%, Nasdaq Composite weakened 0.44% due to selling in memory chip stocks, while Dow Jones strengthened 0.38%. INDONESIA: The government is being urged to promptly implement more targeted fiscal incentives for the middle class to maintain purchasing power amid rising living costs. INDEF assessed that weakening purchasing power could pressure consumption, business sales, and job creation. Although the social protection budget in the 2027 Draft State Budget (RAPBN) rose to Rp549.9 trillion from the 2026 outlook of Rp500 trillion, its effectiveness depends on accurate targeting. Policy options include expanding the Government-Borne Article 21 Income Tax (PPh 21 DTP) incentive, social security contribution assistance, public transportation subsidies, and increasing productive employment and real wages. - In addition, the government issued PMK Number 71 of 2026, effective from 02 October 2026, which prioritizes payment of the principal tax debt before administrative sanctions. This policy is expected to accelerate the settlement of arrears, improve tax compliance, and maintain taxpayers' cash flow, particularly for MSMEs. However, this rule is not a tax amnesty, as the principal debt must still be paid in full, while the reduction or elimination of sanctions continues to follow applicable provisions. JCI closed down 2.59% at 5,936.15 in Monday's (12/10) trading. Amid the market weakness, foreign investors still recorded a net buy of Rp128.29 billion across all markets, consisting of Rp81.10 billion in the regular market and Rp47.18 billion in the cash and negotiated markets. Nonetheless, accumulated foreign YTD net sell still reached Rp111.19 trillion. Foreign fund flows mainly went into GOTO, BBRI, ASII, VKTR, TINS, ERAA, BRMS, SMGR, MEDC, and MDKA shares, while the largest selling pressure was recorded in BMRI, BBCA, BUMI, ANTM, DEWA, ISAT, DSSA, TLKM, EXCL, and BDMN. In the foreign exchange market, the Rupiah traded around Rp17,900 per US Dollar amid domestic sentiment and external risks that continue to weigh. Technically, JCI has broken through its support level, while RSI (14) fell again to the 33 level, indicating selling pressure remains strong. The index could potentially test support at 5,839, with further weakness opening the possibility of moving toward 5,805 – 5,774, which is a gap area. Conversely, if it manages to reverse higher, JCI has the chance to test the 5,973 – 5,995 level, before heading toward 6,098, which is the EMA10 area. KIWOOM RESEARCH advises investors to take a wait-and-see approach or selectively buy on weakness, while awaiting the re-emergence of a strong buy signal.