KIWOOM Morning Equity – 07 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 YIELD PRESSURE EASES, SENTIMENT IMPROVES, INDONESIA PUSHES DOWNSTREAM INVESTMENT US MARKET: Wall Street closed higher on Tuesday (06/10/26), supported by easing bond yield increases and strength in technology and AI stocks. S&P 500 rose 0.58% and Nasdaq 100 rose 0.45% to a fresh record high, while Dow Jones strengthened 253 points. Sentiment improved after the 10-year US Treasury yield fell to 5.26% from a 24-year high of 5.33%, though yields remain elevated amid inflation concerns, the US fiscal deficit, and rising corporate debt issuance. INDONESIA: The government is targeting national investment of around Rp2,900 trillion in 2027 to support 6% YoY economic growth, with around 40%, or Rp1,160 trillion, coming from downstream processing. The main focus covers minerals and coal, as well as expansion into metal commodities, forestry, agriculture, plantations, and marine and fisheries. The government has prepared downstream processing for 28 commodities across 8 sectors, with investment needs through 2040 estimated at around US$618 billion. Downstream realization in H1 2026 reached Rp300.1 trillion, growing 6.9% YoY and contributing 29.7% of total national investment of Rp1,010.6 trillion. - In addition, the DPR RI passed the Labor Protection Law on 06 October 2026, which tightens layoff rules and removes the 0.5x severance multiplier, so the minimum becomes 1x, depending on the cause of termination and length of service. Companies also cannot easily lay off workers citing efficiency reasons. The new rule is expected to strengthen worker protection while providing legal certainty for businesses. JCI closed up 1.21% at 6,192.93 in Tuesday's (06/10) trading, even though foreign investors recorded a net sell of Rp597.49 billion in the regular market. On a YTD basis, accumulated foreign net sell reached Rp109.45 trillion, with foreign fund flows mainly going into TPIA, BBRI, TINS, ANTM, and PTBA, while the largest selling pressure was recorded in GOTO, BMRI, TLKM, PACK, and AADI. The Rupiah traded at around Rp17,910 per US Dollar on Tuesday, slightly stronger than the previous session. The Rupiah's movement remains influenced by investors' wait-and-see stance ahead of the release of several key domestic economic data this week, including September Foreign Exchange Reserves, the Consumer Confidence Index, and August Retail Sales. Technically, JCI successfully broke out of its resistance trendline and is trading above the EMA10. RSI (14) rose again to 43, with bullish momentum returning. If JCI has the opportunity to strengthen again, it could continue testing 6,263 (EMA 20), then 6,328 – 6,334. Conversely, if it weakens again, JCI would return to support at 6,173 / 6,120 and test 6,095. KIWOOM RESEARCH suggests investors could accumulate and hold, while remaining cautious in the event of a trend reversal.