KIWOOM Morning Equity – 26 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. GLOBAL UNCERTAINTY PERSISTS AMID INDONESIA'S GROWTH SLOWDOWN AND FOREIGN OUTFLOW US MARKET: Wall Street closed lower on Friday, with Dow Jones Industrial Average down 1.23% to 52,215.16, S&P 500 correcting 0.52% to 7,623.68, and Nasdaq Composite down 0.21% to 25,955.34. The decline came after a volatile week for the market, although S&P 500 technology sector managed to strengthen 0.35%. Consumer staples, consumer discretionary, and financial stocks recorded the heaviest pressure, with declines of more than 1%. Investors are now bracing for an important week marked by earnings releases from several major companies and the Fed's monetary policy decision. INDONESIA: BPI Danantara targets SOE profitability of Rp334 trillion by the end of 2026 through operational efficiency, simplification of corporate structures, and optimization of state assets. To date, the streamlining process has been carried out on 364 companies, with a target to increase to 700 companies by the end of December 2026. On the other hand, Indonesia's investment realization during October 2024 – September 2026 reached Rp3,923.2 trillion, consisting of domestic investment of Rp1,998.7 trillion and foreign investment of Rp1,924.5 trillion. The investment absorbed around 5.49 million workers, with 51.8% of investment realized outside Java. - In addition, Fitch Ratings estimates that Indonesia's economic growth will slow to 5.2% throughout 2026, below the government's target of 5.4%. After growing 5.4% YoY in 1H-2026, growth is projected to fall below 5% in 2H-2026. The slowdown is influenced by reduced government spending momentum after expenditure increased almost 19% in 1H-2026, contributing around 1.2 percentage points to economic growth. In addition, rising global energy prices due to the US-Iran conflict and weakening consumer confidence are expected to weigh on economic activity and household consumption through the end of the year. JCI closed 0.95% higher at 5,439.26 in Friday's trading (10/23/26), although foreign investors still recorded net sell of Rp1.62 trillion in the regular market and Rp1.29 trillion across all markets. In contrast, cash and negotiated transactions posted net buy of Rp330.57 billion. On a YTD basis, accumulated foreign net sell reached Rp122.20 trillion, with the heaviest selling pressure on BBCA, BBRI, BBNI, GOTO, BRIS, TLKM, BUMI, TPIA, PTBA, and BMRI. Meanwhile, the largest foreign inflows went into DSSA, ASII, AALI, EMAS, ENRG, CUAN, BUVA, UNTR, BRMS, and KOTA. In the foreign exchange market, the Rupiah held near Rp18,080 per US Dollar and stayed above the Rp18,000 level for three consecutive sessions, even though the US Dollar weakened broadly. Technically, JCI managed to close positive again. The RSI (14) rose again to 35.6, indicating the potential for the recovery to continue. If JCI is able to hold above the 5,424 level, there is potential to continue toward resistance at 5,520 (EMA10) and 5,607 – 5,631. However, if profit taking occurs and JCI is unable to hold above the 5,424 level, it could return to 5,328, and JCI could return to support 5,278 / 5,185. Investors are advised to remain cautious, apply a buy on weakness strategy selectively, and wait for further confirmation before accumulating more aggressively.