Market Data In last week’s trading, Jakarta Composite Index (JCI) closed at 6,441.16, down 1.53%. Foreign investors recorded a net sell of IDR 2.95 trillion across all markets and a net sell of IDR 2.90 trillion in the Regular Market. Foreign investors recorded net inflows into BRMS (IDR 367.1B), ANTM (IDR 184.8B), AADI (IDR 108.4B), EMAS (IDR 104.1B), and ERAA (IDR 67.8B). Meanwhile, the largest foreign net selling was recorded in BMRI (IDR 702.5B), BBCA (IDR 626.8B), BBNI (IDR 204.4B), BUMI (IDR 178.7B), and ADRO (IDR 169.7B). Global sentiment: Oil prices fell below US$100/bbl as concerns over supply disruptions eased, with Saudi Arabia reportedly moving around 2.8 million bpd through the Strait of Hormuz over the past six days, significantly higher than around 700,000 bpd in August. China and South Korea remain the main buyers of oil shipped through Hormuz, while China’s refined fuel exports reached 6.01 million tons in August, up 12.7% YoY. Nevertheless, energy-driven inflation remains a concern as higher energy prices could put renewed pressure on consumer inflation and limit room for monetary easing. This was reflected in a rebound in the 10-year US Treasury yield, while the Fed maintained a hawkish stance after raising interest rates last week, with a majority of FOMC members still seeing a need for another rate hike. Domestic sentiment: The government confirmed that the placement of up to IDR 200 trillion of excess budget funds (SAL) in the banking sector will continue through end-2026 and be extended until July 2027, providing greater funding certainty for banks while potentially lowering funding costs and supporting credit expansion. However, the effectiveness of the policy will depend on how effectively the additional liquidity is channeled into the real sector, particularly through stronger productive lending and lower lending rates. Meanwhile, the government has begun developing a strategy for E50 bioethanol-blended fuel as part of its efforts to achieve energy self-sufficiency. The initiative still faces challenges, including limited bioethanol production capacity, the need for new processing facilities, pricing framework certainty, land availability, and readiness of the domestic automotive industry. This week’s economic calendar: In the US, key releases include the Richmond Fed Manufacturing Index (Prev: 4; Cons: 5), S&P Global Manufacturing PMI Flash (Prev: 53.9; Cons: 53.6), Initial Jobless Claims (Prev: 196K; Cons: 202K), Durable Goods Orders MoM (Prev: 1.1%; Cons: -0.5%), and Michigan Consumer Sentiment (Prev: 51.7; Cons: 47.8). In China, investors will monitor the 1Y Loan Prime Rate (LPR) (Prev: 3.0%; Cons: 3.0%) and 5Y LPR (Prev: 3.5%; Cons: 3.5%). In Indonesia, key indicators include the BI Rate (Prev: 5.75%; Forecast: 5.75%), Deposit Facility Rate (Prev: 4.75%; Forecast: 4.75%), Lending Facility Rate (Prev: 6.50%; Forecast: 6.50%), Loan Growth YoY (Prev: 13.58%; Cons: 15.0%), and M2 Money Supply YoY (Prev: 8.3%). Stockpick: AVIA, BBRI, INCO.