Indonesia's former deputy foreign minister says allegations of GIC & Temasek conspiracy are 'nonsensical'

Indonesia's former deputy foreign minister has pushed back against accusations that GIC and Temasek were behind a stock market rout in the Southeast Asian archipelago.

In an Oct. 22 video posted on Instagram, Dino Patti Djalal did not name Ex-Indonesian trade minister Muhammad Lutfi specifically, but addressed the latter's allegations that Singapore was conspiring to cripple Indonesia's capital markets.

Lutfi had previously accused the two Singaporean institutions of pressuring MSCI, a global index provider, to downgrade Indonesia’s market status and devalue Indonesian shares, allowing them to purchase assets cheaply

"Far from the actual reality"

In the video, Dino Patti described Singapore as a country with "goodwill, trust, and a proven track record of cooperation with Indonesia."

He pointed out instances where Singapore came to Indonesia's aid, such as in the 2004 Indian Ocean tsunami disaster or the Covid-19 pandemic, or through various partnerships regarding investment and education.

Singapore has also made several investments to develop parts of Indonesia, such as the Batam-Bintan-Karimun Free Trade Zone or the Kendal Special Economic Zone in Java.

He noted that Singapore has a vital interest in the economic and political stability of Indonesia.

This is because Singapore is one of the countries most affected by crises in Indonesia, he explained:

"As a small country geographically squeezed between Indonesia and Malaysia, it is taboo and forbidden for Singapore's political elite to conspire to harm Indonesia. Just as it is taboo and forbidden for Indonesia to harm Singapore."

He added that Singapore's working policy towards Indonesia is based on cooperation and mutual trust, not malice and sabotage.

The haze

Regarding recent issues with the haze, Dino Patti said it was a "test case" of how President Prabowo Subianto's administration "can conduct diplomacy with wisdom".

He added that it presented an opportunity for Indonesia to show how it can "continue to be a good neighbour" and that it "can handle the haze crisis in a way that further affirms Indonesia' greatness rather than its smallness".

Dino Patti served as the Indonesian ambassador to the U.S. from 2010 to 2013 before resigning to pursue an unsuccessful presidential bid in 2013.

He then served as deputy foreign affairs minister in 2014 and now heads the Foreign Policy Community of Indonesia, an Indonesian think tank focused on international relations