Key facts
- MSCI proposed downgrading Indonesia from Emerging Market to Standalone Market status.
- The Jakarta Composite Index fell 11.57% on October 16, 2026.
- Former minister Muhammad Lutfi alleged Singapore's Temasek and GIC pressured MSCI.
- Temasek denied the allegations, calling them untrue.
Singapore's state investor Temasek has denied allegations that its sovereign wealth funds, Temasek and GIC, were involved in rigging Indonesia's stock market. Former Indonesian trade minister Muhammad Lutfi claimed on October 19, 2026, that the funds pressured MSCI to downgrade Indonesia's market status to "Standalone Market" to drive down prices for cheap asset acquisition. Fock Wai Hoong, head of Asia-Pacific at Temasek Global Investments, stated on October 21, 2026, that the claims had "no basis" and were "patently untrue."
The Jakarta Composite Index fell 11.57% on October 16, 2026, its sharpest one-day decline since January 1998, after MSCI announced on October 15, 2026, its proposal to reclassify Indonesia from its Emerging Markets index due to governance concerns. Indonesia's weight in the MSCI Emerging Markets index had already fallen to 0.43% by September 30, 2026. The Indonesian rupiah weakened to about 18,040 per US dollar on October 19, 2026. Indonesia Stock Exchange president director Jeffrey Hendrik defended MSCI's independence on October 20, 2026.