KIWOOM Morning Equity – 18 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 FOMC, INDONESIA TARGETS 6% GROWTH US MARKET: Wall Street closed lower on Monday's trading (08/17/26), as investors took a breather following a record-setting week. S&P 500 fell 0.52% to 7,745.06, Nasdaq Composite weakened 0.32% to 26,644.91, and Dow Jones Industrial Average corrected 0.51% to 53,459.78. INDONESIA: The government is targeting Indonesia's economic growth to reach 6% in 2027, higher than the 2026 State Budget target of 5.4%. This optimism is supported by first-half 2026 economic growth of 5.45% and investment realization of around Rp1,010 trillion, which created around 1.4 million jobs. The government also raised its 2027 investment realization target to Rp2,322 trillion from the 2026 target of Rp2,041.3 trillion, in line with the 5.8%-6.5% economic growth target. Investment is becoming increasingly important in supporting growth, as reflected in Q2 2026 investment growth of 6.87%, higher than household consumption growth of 5.06%. - In addition, the government continues to promote downstreaming to increase domestic value added. Downstreaming investment realization in the first half of 2026 reached Rp300.1 trillion, or 29.7% of total national investment, growing 6.9% YoY, with the mineral sector still dominating at Rp206.5 trillion. As much as 75.7% of downstreaming investment is located outside Java, particularly in Central Sulawesi and North Maluku. Going forward, downstreaming will be expanded into the plantation, forestry, oil and gas, semiconductor, bioethanol, coconut derivative products, and seaweed sectors. JCI closed up 1.59% at the 6,401.89 level on Friday (08/14), after moving in a range of 6,267.41 – 6,401.89. Foreign investors recorded a net sell of Rp396.50 billion in the Regular Market and Rp1.03 trillion across all markets, with the largest fund inflows into TINS, BBRI, ANTM, BUMI, and VKTR, while the largest selling pressure occurred in TPIA, CUAN, ISAT, BREN, and ASII. Meanwhile, the Rupiah strengthened and moved below Rp17,800/US$ on Monday (08/17) in thin trading due to the Independence Day holiday. Technically, JCI once again managed to break through the 6,377 resistance and stood above the EMA10 (6,324), EMA20 (6,266), and EMA50 (6,275). This condition indicates the short-term bullish trend remains intact and strengthening momentum is rising again after JCI managed to maintain its higher low pattern and break through the nearest resistance. The RSI (14) rose to 59.32, still in neutral-bullish territory and not yet showing overbought conditions, leaving room for further strengthening. If JCI can hold above 6,377, the strengthening could potentially continue toward 6,454, then 6,500 – 6,600 as the next resistance. Conversely, should a correction occur and JCI fail to hold the 6,377 area, the index could potentially test the EMA10 at 6,324, with the next support at 6,275 – 6,266 (EMA50 and EMA20). KIWOOM RESEARCH advises investors to Hold / Accumulate on weakness as long as JCI holds above 6,377, while watching for breakout confirmation toward 6,454. Investors can apply a trailing stop should JCI fall back below 6,377.