Eks Mendag

Eks Trade Minister Muhammad Lutfi filed Singapore to use the global index provider Morgan Stanley Capital International to suppress the Indonesian stock market.

Lutfi represents two presidential eras. First, the era of President Susilo Bautan Yudhoyono (SBY). He took office on February 14th - October 20, 2014. Second, in the era of President Joko Widodo (Jokowi), where he served Mendag on December 23, 2020- 15 June 2022.

Lutfi suspected that Singapore's move was meant to create stock prices in the country falling, so foreign investors could re-enact them for cheap.

According to him, the pressure was made through a threat of a classification of Indonesian markets from emerging markets to independent markets.

"Then, why did Singapore go through such a giant institution as Temasek and GIC which had a huge impact in MSCI so insistent on pressing Indonesia?" said Lutfi in the upload reels in his official Instagram account @ m.lutfi, Monday (19 / 10).

Lutfi even claimed to have information that a GIC official named Rachel Goh was trying to suppress MSCI to lower the status of the Indonesian capital market.

"In fact, I got a live feed inside, Rachel Goh in GIC was angry and hit MSCI to get Indonesian ratings dropped,

There is no evidence for this. The claim of Singapore's involvement, Temacek, GIC, or the figure they call it has not been verified independently.

Lutfi suspects the pressure on the Indonesian capital market has to do with the interest of foreign investors who want to re-buy stock at a lower price.

He claims the foreign institution funds have come out about 80 percent of the Indonesian market. However, the release of the funds is called not making stock prices fall as expected by foreign investors.

"This foreign institution fund has come out about 80 percent of the Indonesian market. The thing is, when they came out, our stock wasn't destroyed. Because the price didn't go down, they couldn't go back in for cheap," he said.

According to Lutfi, the conditions that led to the parties that were meant to create new pressures through MSCI, the decline in the stock market classification of capital can trigger investors' panic and cause RI stock prices to collapse.

That way, according to him, foreign investors have a chance to buy back the company's shares of Indonesia at a cheaper price.

"They press MSCI to threaten to lower the Indonesian caste to the market standalone. Causing mass panic to bring down our stock index. And then they refunnel the best assets of Indonesia at a discount price,

Lutfi also questioned the basic decline of Indonesian status to the standard market. He ties those categories to a country that implements the limitation of capital or capital control, including the limitation of foreign valuta transactions and applications of government-controlled exchange values.

According to him, Indonesia doesn't implement such policies so they don't deserve to be entered into that category.

He confessed to a problem involving a number of domestic conglomerations as an excuse used to highlight the Indonesian capital market. However, he suspected that there was other interests behind that pressure.

Lutfi then linked the stock market issue to Singapore's criticism of Indonesia related to forest fires and land smoke. He declared his view not to defend the government, but to the interests of the state.

"So, for the Indonesian people, don't want us to get fucked up, made minder by the neighboring country. It's about who's in control of Indonesian wealth. We gotta stick together, we gotta be patriotic. We keep our own pride," he said.

Lutfi was known to serve as the Minister of Commerce in two governmental centuries. He first served in the time of President Susilo Bautan Yudhoyono (SBY), February 14 to October 20, 2014.

He then returned to that position in the era of President Joko Widodo (Jokowi), from December 23, 2020 to June 15, 2022.

As a matter of context, MSCI is considering the changes in Indonesian stock classification of the emergency market to the market standalone.

In the announcement of Friday (16 / 10), MSCI calls changing to the pioneer market not enough to reflect the severity of the Indonesian stock market.

MSCI highlights the obscurity of stock ownership structures, coordinated trade allegations, as well as no evidence that reform and law enforcement have produced consistent and sustainable improvements. The MSCI doesn't call Singapore pressure the basis of his consideration.