World · Singapore Bureau
GIC and Temasek reject claims of pressuring MSCI on Indonesia
Singapore's two major sovereign wealth funds have denied allegations that they sought to influence MSCI's decision to downgrade Indonesia's market classification. The denials come amid broader scrutiny of the index provider's methodology.
LSN Singapore ·
GIC and Temasek Holdings have firmly rejected suggestions that they pressured index provider MSCI to downgrade Indonesia's market status, according to statements from the funds. Both institutions said they had no involvement in MSCI's classification decisions and denied any attempt to influence the outcome. The rebuttal addresses recent claims that questioned the independence of MSCI's assessment process regarding Indonesian market accessibility. MSCI maintains that its index decisions are based on objective criteria including market liquidity, foreign investment limits, and regulatory frameworks. The incident has reignited debate about the influence of major institutional investors on index providers and the transparency of market classification methodologies across emerging markets. Indonesia had previously sought to challenge aspects of MSCI's classification framework, citing improvements in market infrastructure and regulatory standards.