Business · Markets · 3 hrs ago
GIC and Temasek deny pressuring MSCI over Indonesia market status
GIC and Temasek denied pressuring MSCI to downgrade Indonesia’s stock market status.
The claims came from former Indonesian trade minister Muhammad Lutfi, who alleged the Singapore state investors wanted to push share prices down and buy stocks more cheaply.
MSCI is consulting on moving Indonesia from emerging to standalone status, a category outside its main developed, emerging and frontier market groups.
MSCI said it was considering the change, while the Indonesian article cited concerns about market access, ownership transparency and coordinated trading practices.
The proposal triggered a sharp market fall: Indonesia’s main stock index dropped as much as 16 per cent after MSCI announced the consultation, then recovered some losses.
GIC said it bases investments on company and asset fundamentals and has invested in Indonesia for more than 30 years.
MSCI’s final decision is due by June 30, 2027, with possible interim updates during the consultation.
GIC and Temasek denied allegations that they pressured MSCI to downgrade Indonesia’s market status.
The allegations were made by former Indonesian trade minister Muhammad Lutfi in an Instagram post.
Lutfi claimed the firms sought to trigger a sell-off and buy Indonesian shares at lower prices.
MSCI has proposed reclassifying its Indonesia indexes from emerging-market to standalone status and is consulting market participants.
The Jakarta Composite Index fell as much as 16 per cent after MSCI announced the consultation, according to CNA.
- Who
- Singapore state investors GIC and Temasek, and former Indonesian trade minister Muhammad Lutfi.
- What
- GIC and Temasek denied Lutfi’s allegations that they pressured MSCI over Indonesia’s market classification.
- When
- The denials were reported on Oct 21, 2026.
- Where
- The allegations concern Indonesia’s stock market and MSCI’s Indonesia indexes.
- Why
- Lutfi alleged the firms wanted to drive down share prices and acquire Indonesian stocks at a discount; the firms rejected the claims.
GIC and Temasek
Muhammad Lutfi
Alleged pressure on MSCI
GIC and Temasek
GIC and Temasek said the allegations were untrue and baseless.
Muhammad Lutfi
Lutfi claimed the firms pressured MSCI to consider downgrading Indonesia’s market status.
Intent regarding Indonesian shares
GIC and Temasek
GIC said its decisions are based on company- and asset-level fundamentals, not index classifications.
Muhammad Lutfi
Lutfi alleged the firms aimed to trigger a sell-off and acquire shares at lower prices.
Lutfi published an Instagram post alleging that GIC and Temasek pressured MSCI and sought to drive down Indonesian share prices.
MSCI announced a consultation on a proposal to reclassify its Indonesia indexes from emerging-market to standalone status.
GIC and Temasek rejected the allegations.
MSCI is expected to announce a final decision on the proposed reclassification, according to CNBC Indonesia.
- Firms named
- GIC and Temasek
- Former minister
- Muhammad Lutfi
- MSCI proposal
- Reclassify Indonesia indexes from emerging market to standalone status
- Jakarta Composite Index decline
- As much as 16 per cent after MSCI’s announcement, according to CNA
- Final decision deadline
- June 30, 2027, according to CNBC Indonesia
3 sources
What people are saying
The allegations about GIC and our staff are untrue.
Keputusan investasi kami tidak didorong oleh klasifikasi indeks atau pandangan pasar dari atas ke bawah, melainkan oleh fundamental tingkat perusahaan dan aset.
No one from Temasek, neither the institution nor the individuals working for the institution, have ever reached out to MSCI in order to influence any decisions they have ever made around any exchange across the region,
patently untrue