In recent weeks, the exchange rate forecast for the Singapore Dollar (SGD) to Indonesian Rupiah (IDR) has been influenced by various economic developments in both countries. Analysts note that the SGD is currently trading at 12,804 IDR, which is stable, remaining within a 3.0% range of its three-month average. This stability reflects a measured response to economic conditions impacting both currencies.
The Monetary Authority of Singapore (MAS) recently opted to maintain its monetary policy, citing confidence in Singapore's economic resilience despite external uncertainties. With GDP growth surpassing expectations at 2.9% year-on-year for Q3 2025, the outlook for the SGD remains cautiously optimistic. However, a downward revision of core inflation forecasts, reducing estimates to 0.5% to 1.5%, indicates easing inflationary pressures that could influence monetary policy adjustments in the future.
Conversely, the Indonesian Rupiah's trajectory is being shaped by several pressing factors. Economic growth projections for Q4 2025 indicate an acceleration to 5.67% year-on-year, which may attract foreign capital inflows and provide temporary support for the IDR. However, the unexpected removal of the Finance Minister has raised investor concerns, leading to volatility and a notable depreciation of the rupiah. Furthermore, ongoing protests related to tax reforms have added to the uncertainty, complicating the broader economic landscape for the IDR.
Bank Indonesia is actively seeking to stabilize the rupiah, committing to bold interventions in both spot and forward markets along with government bond purchases. This proactive approach aims to mitigate the impact of market fluctuations and maintain currency integrity amidst rising political and social tensions.
In summary, while the SGD holds steady against the IDR, the outlook for both currencies is influenced by internal economic resilience in Singapore and significant challenges currently facing Indonesia. Analysts and market observers suggest monitoring these developments closely, as shifts in policy or economic performance could lead to adjustments in the exchange rate in the near future.
