GIC, Temasek reject claim they pushed MSCI on Indonesia downgrade

Singapore state investors GIC and Temasek denied allegations that they pressured MSCI to threaten a downgrade of Indonesia's stock market classification. The denials came after former Indonesian trade minister Muhammad Lutfi claimed in an Instagram post that the firms sought to stir panic and buy Indonesian shares more cheaply. Last week, MSCI opened a consultation on moving Indonesia from emerging-market to standalone status, citing concerns that included suspected coordinated trading. The warning sparked a sharp market rout, with the Jakarta Composite Index at one point down 16% before trimming losses. President Prabowo Subianto on Wednesday accused MSCI of trying to intimidate Indonesia, while MSCI said its decisions follow transparent, rules-based methods.