KIWOOM Morning Equity – 04 November 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 MARKETS MIXED, US–IRAN TENSIONS RISE, INDONESIA EXPANDS DIGITAL VAT COLLECTION US MARKET: Wall Street closed mixed in Tuesday's trading (11/03/26). S&P 500 index rose 0.4% and Nasdaq Composite strengthened 0.8%, while Dow Jones Industrial Average fell 197 points. The gains were mainly driven by a rebound in semiconductor stocks after coming under pressure in the previous session. Nvidia rose 2.3%, AMD strengthened 3.6%, Broadcom added 3.1%, and Micron rose 2.6%. Hyperscaler stocks also strengthened, led by Oracle, which surged 6%, and Microsoft, which rose 2.7%. In contrast, Apple fell 1.9% due to concerns over the impact of rising memory chip costs on profit margins, while Palantir weakened 1.6%. INDONESIA: The government plans to again revise the provisions on Natural Resource Export Proceeds (DHE SDA), even though the latest regulation through Government Regulation (PP) No. 21 of 2026 only took effect on June 01, 2026. The changes will take into account input from businesses and exporters, with policy details still to be socialized. Previously, the government had revised the DHE SDA rules three times through PP No. 8 of 2025, PP No. 2 of 2026, and PP No. 21 of 2026, covering foreign exchange placement obligations, time periods, placement instruments, and flexibility in the use of foreign currency. We assess that potential further changes need to be monitored as they could affect cash flow flexibility, liquidity, and the competitiveness of exporters, particularly in the mining and plantation sectors. - In addition, the government will expand the involvement of financial institutions in collecting VAT on foreign digital transactions through the Foreign Digital Transaction Tax Collection System (SPP-TDLN) starting in November 2026. In the initial stage since September 25, 2026, there are six designated issuers, namely BRI, Bank Mandiri, BNI, BTN, BSI, and LinkAja, while around 30 banks and fintech companies have been involved in preparing the system expansion. This policy is neither a new tax nor a change in VAT rates, but an additional mechanism to expand the reach of cross-border digital transaction tax collection. Unlike the PMSE VAT scheme that collects tax through digital platform providers such as Google, Netflix, and Spotify, SPP-TDLN involves banks and fintech companies as payment facilitators. We assess that this policy has the potential to improve tax revenue effectiveness and digital transaction compliance, while paying attention to technical implementation and mitigation of double taxation risk. JCI closed 3.78% lower at 4,904.29 in Tuesday's trading (11/03/26). Market pressure was also reflected in foreign investor selling, which recorded net sell of Rp759.98 billion in the regular market and Rp575 billion across all markets, bringing accumulated foreign net sell on a YTD basis to Rp127.50 trillion. Nevertheless, foreign investors still recorded net purchases in BMRI, BRIS, ASII, BBNI, and AADI, while the largest selling was recorded in BBRI, ANTM, BUMI, TPIA, and TINS. On the other hand, the Rupiah strengthened to around Rp18,130 per US Dollar. The Rupiah's strengthening was supported by a September trade surplus that was higher than expected, although import growth was recorded faster than exports. Technically, JCI broke down support and the downtrend continued. If JCI does not return above the 4,907 level, JCI could continue toward the nearest support at 4,800 / 4,600 and 4,456 (FR 161.80%). With a scenario of returning above the 4,907 level, JCI could return to the nearest resistance at 4,981 / 5,098 / 5,182. Investors are advised to remain cautious and wait for clear signal confirmation.