The recent forecasts and currency market updates suggest a mixed outlook for the SGD to IDR exchange rate. As of early December 2025, the SGD is trading at approximately 12,881 IDR, which is at 60-day highs and just above its three-month average. The exchange rate has been relatively stable, fluctuating within a 1.8% range, indicating solid performance of the SGD against the IDR recently.
Analysts note that the Singapore Dollar's position has been influenced by the Monetary Authority of Singapore's (MAS) recent policy decisions. In January, MAS adopted an easing stance by reducing the slope of its exchange rate policy band in response to lower-than-expected core inflation and to support economic growth. The decision reflects a balanced economic performance, as evidenced by the 2.9% expansion in the third quarter of 2025, which exceeded expectations. However, the backdrop of escalating U.S. trade tensions, particularly concerning tariffs on key Singaporean exports, could place downward pressure on the SGD.
On the other hand, the Indonesian Rupiah faces its challenges. Governor Perry Warjiyo of Bank Indonesia has indicated an intention to strengthen the IDR against the U.S. dollar, with a target of 16,500 IDR per dollar in the upcoming year. Nevertheless, recent market volatility due to protests in Jakarta and the impact of U.S. Federal Reserve interest rate hikes have contributed to the rupiah's depreciation against the dollar. The central bank recently paused rate cuts, aiming to gauge the effects of previous reductions, which could influence monetary policy transmission.
In summary, while the Singapore Dollar shows resilience supported by strong economic growth and a cautious monetary policy approach, the Indonesian Rupiah’s outlook is clouded by domestic instability and pressures from external economic factors. As such, the SGD is expected to maintain a stronger position relative to the IDR in the near term, but ongoing market developments will be critical to monitor for shifts in this dynamic.
