Rupiah Plummets to Rp14,000 per Singapore Dollar as Fiscal Concerns Grow

Pressure on the rupiah is not only coming from the strengthening of the US dollar (USD). On Friday, 29 May 2026, the rupiah also weakened against the Singapore dollar. The Indonesian currency briefly touched Rp14,000 per Singapore dollar, one of the weakest levels in history. This has sparked concerns in the domestic financial market. The rupiah’s decline against the Singapore dollar is not solely due to global volatility. Several domestic factors have made investors more cautious about Indonesian assets. He estimated the rupiah could move towards Rp15,000 to Rp16,000 per Singapore dollar if domestic financial market pressures persist. ‘The rupiah against the Singapore dollar has reached nearly Rp14,000, even Rp14,000 which is the weakest level in history. But there is a strong possibility the rupiah against the Singapore dollar will head towards Rp15,000-Rp16,000,’ he said. According to Ibrahim, one of the main factors pressuring the rupiah is increasing investor concerns over Indonesia’s fiscal condition. Various government programs requiring large budgets have raised questions about the sustainability of fiscal management and the health of the national budget (APBN). ‘Why? I say the rupiah against the Singapore dollar is at Rp14,000 to Rp15,000 due to domestic fundamental issues which, in my view, are poorly managed,’ he explained. Although some budget requirements for these programs have been adjusted, the market is still monitoring their impact on national fiscal health. Ibrahim also highlighted the Village Red and White Cooperatives (Kopdes) program. He said the program continues to generate various opinions among economic actors and investors regarding its effectiveness and long-term prospects. ‘We know there are many large-scale government programs that cause concerns about budget deficits, particularly MBG and the Red and White Cooperatives. Although MBG has been partially scaled back, its previous impact was enormous, with over Rp300 trillion in funds used for MBG,’ he added.