GIC, Temasek Deny Claims They Pressured MSCI to Downgrade Indonesia's Market
The two Singapore sovereign wealth funds said they never tried to influence MSCI's review as Indonesia faces a possible index downgrade.
- Singapore sovereign wealth funds GIC and Temasek rejected allegations on Wednesday that they pressured MSCI to downgrade Indonesia's market status, calling the claims "no basis and are patently untrue."
- Former Indonesian trade minister Muhammad Lutfi accused the investors on Tuesday of coercing MSCI to trigger a downgrade, claiming the move could incite market panic to acquire Indonesian equities at lower prices.
- Last week, MSCI announced a potential reclassification over concerns including "suspected coordinated trading practices," causing the Jakarta Composite Index to plunge as much as 16 per cent before paring losses to trade at around 5,300 points.
- Indonesian President Prabowo Subianto said on Wednesday that MSCI was trying to "intimidate" his country, while the Indonesia Stock Exchange recovered 5 per cent on Tuesday after announcing plans to expel concentrated-ownership companies.
- MSCI will accept market feedback until April 30, 2027, and announce a final decision by June 30, 2027; the Jakarta exchange previously cut its minimum trade price from 50 rupiah to 1 rupiah to address liquidity concerns.
14 Articles
14 Articles
Former Deputy Foreign Minister Dino Patti Djalal responded to accusations of a Singaporean conspiracy against the Indonesian economy.
Dino denied the view that Singapore conspired to bring down the Indonesian capital market through MSCI.
Singapore’s Temasek and GIC Deny Instigating Indonesian Stock Rout
GIC, Temasek deny allegations of pressuring MSCI to downgrade Indonesia
SINGAPORE - Singapore sovereign wealth funds GIC and Temasek have rejected allegations that they or their staff pressured index provider MSCI to consider downgrading Indonesia's stock market classification.The denials follow accusations on Oct 20 by former Indonesian trade minister Muhammad Lutfi that the two investors coerced MSCI to consider downgrading Indonesia.The former minister claimed that a downgrade could trigger market...
https://www.law-justice.co/detail.php?ID=212332Former Minister of Foreign Affairs of the Republic of Indonesia (Menlu RI), Dino Patti Djalal, emphasized that the accusation that Singapore conspired to bring down the Indonesian capital market was unreasonable.
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