The exchange rate forecast for SGD to IDR reflects a complex interplay of monetary policy and political stability in both Singapore and Indonesia. The current rate sits at 12,774 IDR per SGD, just above its three-month average, indicating a stable range of movement within 2.0% from 12,591 to 12,840. This stability may be influenced by the Monetary Authority of Singapore's (MAS) decision to hold its monetary policy unchanged after better-than-expected economic growth, alongside easing trade tensions. Analysts acknowledge that a continuing low inflation rate allows MAS to maintain its current stance, although future projections for economic growth could pose uncertainties, particularly as 2026 approaches.
On the other hand, the Indonesian rupiah faces significant downward pressure following recent political upheavals, including the dismissal of key economic ministers by President Prabowo Subianto. This development has raised concerns regarding fiscal discipline and market confidence. Economic disruption from widespread protests has further weakened the IDR, leading Bank Indonesia to actively intervene to stabilize the currency. Forecasters suggest that the central bank is aiming for an exchange rate around 16,300 IDR per USD, reflecting its efforts to counter the rupiah's volatility.
Forecasts from economists remain mixed regarding the SGD's trajectory against the IDR in the near term. While some anticipate that the SGD may enjoy relative strength due to Singapore's stable economic indicators, others express caution given Indonesia's potential for economic instability and changes in investor sentiment. As both countries navigate these developments, businesses and individuals engaged in international transactions should remain vigilant and consider forward contracts as a hedge against currency fluctuations.
