Recent analyses indicate a mixed outlook for the SGD to IDR exchange rate, influenced by various economic and political developments in both Singapore and Indonesia. The SGD currently trades at 7-day lows near 12,784 IDR, coinciding closely with its 3-month average, reflecting a stable 3.0% trading range from approximately 12,591 to 12,974 IDR.
In Singapore, the Monetary Authority of Singapore (MAS) recently maintained its monetary policy stance, signaling confidence in the country's economic resilience amidst global fluctuations. A notable surprise came from Singapore's Q3 GDP growth of 2.9%, significantly surpassing earlier forecasts of 1.9%, promoting a bullish sentiment around the SGD. Moreover, easing inflationary pressures have led to a downward revision in core inflation forecasts, which may support continued confidence in Singapore's currency.
Conversely, the Indonesian rupiah faces challenges stemming from a mix of economic growth forecasts and political uncertainty. Indonesia's growth is projected to accelerate to 5.67% in Q4 2025, which could lead to increased foreign investment and bolster the IDR. However, political turmoil from the unexpected removal of Finance Minister Sri Mulyani Indrawati has raised investor concerns, contributing to the recent depreciation of the rupiah. In response, Bank Indonesia has announced plans to aggressively stabilize the currency through various market interventions.
The ongoing protests over fiscal policies in Indonesia add further volatility, which may impact investor sentiment regarding the IDR. As markets digest these developments, analysts are closely monitoring how the interplay between Singapore's economic strength and Indonesia's political stability will shape the future of the SGD-IDR exchange rate.
