Singapore’s sovereign wealth funds, Temasek and GIC, are defending themselves against accusations that they secretly plotted the recent collapse of Indonesia’s stock market.
Global index provider Morgan Stanley Capital International (MSCI) proposed moving Indonesia to a lower category in its global stock market rankings. The proposal triggered panic selling, and Indonesia’s main stock market index, the Jakarta Composite Index, fell more than 11% in one day. It has now lost 40% of its value this year.
Indonesia just took its worst stock market hit in nearly three decades, and it started with an index provider’s phone call, not a war or a default. The central bank’s answer on Wednesday was to do almost nothing, and that is the interesting part.
— gin.hl (@gin_cryptodiary) October 21, 2026
Following the crash, allegations emerged that Singaporean institutions could benefit from falling Indonesian stock prices by buying struggling companies at lower prices.
In response, Fock Wai Hoong, head of Asia-Pacific at Temasek, firmly dismissed the claims as “patently untrue,” stating the institution had absolutely no involvement in the rating change. The sudden financial destruction has left citizens furious and looking for alternatives outside the traditional banking system.
@Mudha_asmara blamed Indonesia’s government for the country’s economic problems, arguing that its policies had made life harder for ordinary people.
@AshCrypto no needed to be specific brooo 🤣 better shout out louder with; “indonesia is crashing‼️ if you’re poor in where ever you are, here you’ll be rich automaticallly‼️” 😭 the govt selfishness & dirty policies had driven indo people became beggars successfully 🗿
— (“~ ,-)a (@mudha_asmara) October 21, 2026
@Little_K_Story compared the situation to Malaysia’s 1998 financial crisis, when the country fixed its currency at 3.80 ringgit per US dollar to stabilize it. The user argued that without a similar measure in Indonesia, people may turn to US dollars and Bitcoin to protect their money.
@AshCrypto Same like ringgit in 1998, Malaysia pegged it at 3.80 to stop the bleeding.
Indonesia got no peg this time, so ppl just run to dollars and BTC….— Little K (@Little_K_Story) October 21, 2026
@Renogreenish supported this view, saying Bitcoin’s limited supply could help it hold or increase its value over time, unlike traditional currencies that can lose purchasing power.
“Fiat currencies keep losing purchasing power, but Bitcoin remains limited. ₿🔥
As traditional money weakens, even a fraction of Bitcoin could become more valuable than most people imagine.
0.7 BTC today could represent generational wealth tomorrow. 🚀
— Dursu 🇹🇷🇺🇸 (@renogreenish) October 21, 2026
Can crypto make investors rich during a crash?
Indonesia’s market crisis shows why investors should consider where they keep their money. Relying on one country’s financial system can leave investors exposed when the stock market falls, the local currency loses value, or banks restrict withdrawals. Bitcoin and dollar-pegged stablecoins offer other options, but neither is risk-free. Bitcoin prices can drop sharply, while stablecoins depend on their issuers maintaining their dollar peg.
However, holding cryptocurrency during a national economic crash will not make you rich. When a country’s currency collapses, it takes more and more of that local currency to equal a single US dollar. Moving your capital into a hard digital asset before the crash builds a protective wall around your purchasing power, keeping your life savings intact as local money loses value.
Meanwhile, Singapore is having two very different conversations about AI. The government is pushing businesses and public agencies to use AI more, while the country’s financial regulator is warning about the risks behind the investment boom.
Enjoyed this? Bookmark DeFi Planet, explore related topics, and follow us on Twitter, LinkedIn, Facebook, Instagram, Threads, and CoinMarketCap Community for seamless access to high-quality industry insights.
Take control of your crypto portfolio with DEFI PLANET PRO, DeFi Planet’s suite of analytics tools.
