The exchange rate for the Singapore Dollar (SGD) to Indonesian Rupiah (IDR) has recently stabilized at approximately 12,874 IDR per SGD, slightly above its three-month average. Market analysts indicate that the SGD has remained within a consistent trading range of 12,748 to 12,974 IDR over the last few months, reflecting a stable yet cautious outlook influenced by various economic factors and monetary policy adjustments in both Singapore and Indonesia.
In Singapore, the Monetary Authority of Singapore (MAS) made adjustments to its monetary policy earlier in January 2025, which included reducing the slope of its exchange rate policy band. This was a strategic move aimed at fostering economic growth amidst lower-than-expected inflation projections. As of October 2025, stronger economic performance was noted, with the economy expanding by 2.9% year-on-year, prompting MAS to maintain its monetary policy stance. Analysts foresee this stability contributing to a continued gradual appreciation potential of the SGD.
Conversely, the Indonesian Rupiah is facing downward pressures due to a series of challenges, including global economic conditions and local market volatility. Bank Indonesia's governor highlighted plans to strengthen the Rupiah, targeting a rate of 16,500 per USD in the coming year. However, the central bank paused interest rate cuts to better assess the impact of previous reductions, which has led to some instability in the market. Additionally, domestic protests in August contributed to a depreciation of the Rupiah, further complicating the currency's outlook.
In summary, while the SGD appears to be on a stable upward trend influenced by domestic economic growth and MAS's policies, the IDR faces significant external pressures and domestic challenges. Analysts will continue to monitor these developments closely, considering that shifts in both currencies can directly impact international transaction costs for businesses and individuals interacting across these markets.
