The exchange rate forecast for the Singapore Dollar (SGD) to Indonesian Rupiah (IDR) remains influenced by a mix of robust economic indicators and external factors. Recently, analysts have noted that the SGD is experiencing strength, trading at near 30-day highs around 12,825 IDR, positioning just above its three-month average. This stability suggests a positive outlook for the SGD in the short term.
The Monetary Authority of Singapore (MAS) has maintained its monetary policy settings, reflecting confidence in the economy's resilience despite global uncertainties. A surprising GDP growth of 2.9% year-on-year in Q3 2025 has exceeded expectations, contributing to bullish sentiment surrounding the SGD. Analysts indicate that the easing of inflation pressures impacts currency stability, as MAS has revised its core inflation forecast downwards.
Conversely, the Indonesian Rupiah faces challenges, exacerbated by political uncertainties and social unrest. The unexpected removal of Finance Minister Sri Mulyani Indrawati has prompted investor concerns, leading to a depreciation in the IDR. Reports of nationwide protests against tax increases further heighten market volatility, creating a less favorable environment for the currency.
Despite these challenges, there are projections for improved economic growth in Indonesia, with Finance Minister Purbaya Yudhi Sadewa expecting Q4 growth to accelerate to 5.67%. This optimism may lure foreign capital inflows, potentially offering support to the IDR. Additionally, the central bank's commitment to intervene in the markets to stabilize the rupiah could offer further resilience.
Market forecasts suggest a cautious outlook for the SGDIDR exchange rate, with the SGD likely maintaining its relatively strong position in the near term due to Singapore's economic performance while the IDR grapples with local challenges.
