KIWOOM Morning Equity – 01 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. US INFLATION EASES, GLOBAL RATE PRESSURES MODERATE, INDONESIA PREPARES 2027 INCENTIVES US MARKET: Wall Street closed mixed on Wednesday (30/09/26). S&P 500 fell 0.25% to 7,651.54, Dow Jones weakened 0.86% to 50,906.05, while Nasdaq Composite rose 0.24% to 26,861.06. Gains in technology stocks supported Nasdaq, with Alphabet up 0.9%, Microsoft 0.8%, Nvidia 0.5%, and Intel 3.7%. For the month of September, S&P 500 fell 0.4%, Nasdaq 100 rose 3.2%, and Dow Jones fell 4.3%. INDONESIA: The government is finalizing a number of policies to be continued and expanded in 2027, including an adjustment to the Non-Taxable Income threshold (PTKP), which currently stands at Rp54 million per year and has not changed since 2016. The PTKP adjustment is being calculated together with the Ministry of Finance, taking into account inflation developments. The government also plans to expand Article 21 Income Tax incentives for workers earning below Rp10 million to all sectors, estimated to cover around 7.5 million workers, as well as continue the Government-Borne VAT (PPN DTP) facility for the housing sector. - In addition, the government is preparing to expand subsidized mortgages (KPR) with a 6% interest rate for people with fixed incomes of around Rp17 million, for home purchases of up to Rp500 million. Other policies being prepared include adjustments to work-accident insurance (JKK) and death benefits (JKM) for non-wage-earning workers, adjustments to job-loss insurance benefits based on income groups, and changes to VAT facility regulations for the use of 99.9%-purity precious metals. All of these policies are still in the finalization stage together with relevant ministries and will be set out in regulations for implementation in 2027. JCI closed down 0.83% at 6,071.14 in Wednesday's (30/09) trading, with foreign investors recording a net sell of Rp1.56 trillion in the regular market, bringing accumulated YTD net sell to Rp107.18 trillion. Foreign fund flows mainly went into UNTR, ANTM, JARR, EMAS, and GOTO, while the largest selling pressure was recorded in TLKM, BMRI, BBCA, ASII, and BBRI. In the currency market, the Rupiah strengthened for a second session and traded around Rp17,850 per US Dollar, supported by Bank Indonesia's affirmation to maintain consistent and sustainable intervention by reducing spot intervention to 30% and increasing focus on NDF. On the fiscal side, policy certainty also improved after the DPR passed the 2027 State Budget Bill. Technically, JCI is still moving within its down channel, with RSI (14) falling to 29.8, entering oversold territory. If JCI weakens again, the decline could once again test 6,033.38 (FR 61.80%) and 5,987, and could continue to the 5,898 level if that breaks. Conversely, if it manages to strengthen, it could retest the 6,150 level, then return to the 6,186 level, then 6,227 – 6,241. KIWOOM RESEARCH sees an opportunity for buy on weakness and remains cautious should pressure continue.