Recent analytical forecasts and developments indicate that the SGD to IDR exchange rate has been influenced by a combination of monetary policy adjustments, economic indicators, and socio-political events in both Singapore and Indonesia. As of late December 2025, the SGD is trading at 90-day highs near 13,062 IDR, reflecting a 1.7% increase over the three-month average of 12,848 IDR, staying within a stable 2.5% range.
In Singapore, the Monetary Authority of Singapore (MAS) has pursued a cautious approach to monetary policy, easing the nominal effective exchange rate band earlier this year to support economic growth and mitigate inflation risks. While easing inflation was noted, Singapore's GDP growth showed moderate signs following a robust first half of the year. Furthermore, the impact of U.S. trade tariffs on key exports has contributed to a more measured outlook for the SGD.
Conversely, the Indonesian rupiah has faced considerable headwinds, having reached a 27-year low amid domestic political uncertainties and the broader implications of the U.S.-China trade war. Protests in Jakarta further exacerbated the currency's challenges, alongside declining tax revenues that raised alarms over a possible expanding budget deficit. In response, the Indonesian government has proposed repatriation measures for U.S. dollar holdings aimed at strengthening the rupiah. Analysts suggest that such fiscal moves could introduce some stability, though the undermining effects of political instability remain a significant concern.
The interplay of these factors suggests that the SGD may continue to exhibit strength against the IDR in the near term. Experts underscore that while the SGD benefits from supportive domestic policies, the IDR's vulnerabilities may persist given the ongoing political and economic challenges in Indonesia. As currency dynamics evolve, stakeholders are advised to monitor both local and international developments that could influence future exchange rate movements.
