KIWOOM Morning Equity – 21 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. AI OPTIMISM SUPPORTS GLOBAL MARKETS, INDONESIA FACES FISCAL CHALLENGES US MARKET: US stock futures strengthened on Wednesday, with Nasdaq 100 futures up 0.7% and S&P 500 futures gaining 0.2%. The gains were led by artificial intelligence (AI)-related stocks after Super Micro Computer jumped more than 15% on solid preliminary results, boosting optimism over AI infrastructure demand. Dell Technologies, Hewlett Packard Enterprise, CoreWeave, and Nebius Group also strengthened. SpaceX shares rose 8% after Q3 revenue jumped 161% to US$14.58 billion. Elon Musk also disclosed that SpaceX and Tesla had formed a special committee to explore a possible merger. In contrast, Netflix shares fell more than 5% after recording their slowest sales growth in three years and projecting a growth slowdown for a fourth consecutive quarter. INDONESIA: Downstream processing investment reached Rp1,199 trillion from Q4 2024 through September 2026. Over January–September 2026, realization reached Rp480 trillion, growing 11.3% YoY and contributing 31.2% to national investment. The mineral sector dominated with Rp335.1 trillion, while 78% of investment was realized outside Java, mainly in Central Sulawesi and North Maluku. In Q3 2026, downstream investment grew 19.4% YoY to Rp179.9 trillion. - In addition, Q4 2026 state budget spending is estimated to reach Rp1,300 trillion, up from Rp1,200 trillion in the same period last year. CORE Indonesia warned of the risk of the deficit widening to Rp807 trillion if revenue only reaches the Rp3,153.6 trillion target. To keep the deficit below 3% of GDP, state revenue needs to reach at least Rp3,190 trillion. Other risks include rising debt costs and declining spending quality. The government continues to target a deficit of 2.58% of GDP, with budget efficiency and the option of using the budget surplus balance (SAL) to manage financing needs. JCI closed up 5.65% at 5,278.89 in Tuesday's (20/10/26) trading. Foreign investors booked a net sell of Rp2.13 trillion in the regular market, or a net sell of Rp2.19 trillion across all markets, while cash and negotiated transactions recorded a net sell of Rp80.33 billion. Accumulated foreign net sell YTD reached Rp118.57 trillion. The largest foreign selling pressure occurred in BBCA, BBRI, BMRI, ISAT, MDKA, ICBP, AADI, TINS, ADRO, and BRIS. Meanwhile, the largest foreign fund inflows were recorded in TLKM, TPIA, GOTO, PTRO, DEWA, BRPT, UNTR, RAJA, EXCL, and CDIA. The Indonesian Rupiah moved higher, fluctuating near Rp18,000 per Dollar on Tuesday as the Dollar index weakened and market participants weighed the outlook for Fed policy ahead of the October meeting. Technically, JCI rebounded and is approaching its nearest resistance, but remains well below the EMA10, EMA20, and EMA50, indicating the bearish trend remains strong. RSI (14) rose to the 28.67 level, indicating oversold conditions, which opens room for a further technical rebound. If JCI can break back through the 5,317 area, it has the chance of a rebound toward resistance at 5,607 – 5,631. However, if selling pressure continues and JCI breaks through support at 4,999 / 4,980 / 4,907, a break would risk continuing the weakness toward the 4,456 (FR 161.80%), 4,173 / 4,000 area. Investors are advised to remain cautious, apply a selective buy on weakness strategy, and wait for confirmation of a resistance break before accumulating more aggressively.