Temasek and GIC Refute Former Minister’s Claim They Manipulated MSCI Downgrade

In a social-media video, former Indonesian trade minister Muhammad Lutfi claimed Singapore’s two largest sovereign wealth funds, Temasek and GIC, were pressuring MSCI to downgrade Indonesia to a stand-alone market, thereby sparking a stock market rout that would let them acquire assets at lower prices. Temasek’s Asia-Pacific head, Fock Wai Hoong, responded at a tech briefing in Singapore, stating that neither the institution nor its employees have ever approached MSCI or tried to sway its decisions.

GIC’s spokesperson similarly dismissed the accusations, emphasizing that the fund’s Indonesian investments span more than three decades and are driven by company-level fundamentals rather than index outcomes. MSCI, which recently signaled a possible removal of Indonesia from its global indices, did not immediately reply to requests for comment. Indonesian officials are working to avert a downgrade, with the stock exchange planning to adjust index calculations after discussions with MSCI.