GIC and Temasek deny pressing MSCI over Indonesia market status
MSCI is consulting on a proposed move from Emerging Market to Standalone Market status for Indonesia, with a final decision due by 30 June 2027.
Singapore investors GIC and Temasek have rejected allegations that they pressured MSCI to consider downgrading Indonesia’s stock market classification. Their responses on 21 October followed claims posted on social media by former Indonesian trade minister Muhammad Lutfi on 20 October.
MSCI’s proposed reclassification of Indonesia from Emerging Market to Standalone Market remains subject to consultation with market participants. The index provider said it would announce its final decision by 30 June 2027 and might issue interim updates on feedback.
A GIC spokesperson said the investor bases its decisions on company and asset fundamentals rather than index classifications or broad market views. GIC said it had invested across asset classes in Indonesia for more than 30 years and would continue seeking opportunities based on a bottom-up, risk-adjusted approach.
Fock Wai Hoong, Temasek’s head of Asia Pacific excluding China and India, described the allegations as unfounded and untrue. He said neither Temasek nor its employees had contacted MSCI to influence decisions concerning any exchange in the region.
Lutfi had alleged that the investors sought a downgrade that could trigger market panic and allow Indonesian shares to be acquired at lower prices. MSCI, meanwhile, cited investor concerns about the investability of Indonesian stocks, including ownership transparency and suspected coordinated trading, as grounds for reviewing the country’s classification.
