Rupiah Weakens Against Singapore Dollar as Well as US Dollar
The rupiah is not only weakening against the US dollar. Economists have also highlighted its decline against neighbouring currencies, such as the Singapore dollar. According to Bloomberg, the rupiah stood at Rp13,928.88 per Singapore dollar on Wednesday, 27 May 2026.
Economist Rahma Gafmi from Airlangga University said that public discourse on exchange rate fluctuations has long focused on the dominance of the US dollar (greenback), leading the public to accept rupiah weakness under the guise of the Fed’s ‘high for longer’ policy or global geopolitical tensions driving safe-haven assets.
‘However, looking towards the Strait of Malacca, there is a far more worrying reality: the rupiah is not just yielding to Washington but is increasingly powerless against Singapore,’ Rahma said on Wednesday, 27 May 2026.
She explained that data shows a consistent trend of the Singapore dollar climbing and setting new records against the rupiah.
‘This phenomenon proves that the rupiah’s challenges are not merely about US global dominance but a clear divergence in regional economic strength,’ she added.
According to Rahma, there are three reasons for the rupiah’s weakening against the Singapore dollar, which serve as a warning for Indonesia. First, Singapore is not just a neighbour but a regional financial hub with significant trade and financial ties to Indonesia. A weaker rupiah against the Singapore dollar directly impacts logistics costs, service imports, and corporate transactions.
Second, contrasting monetary policies between Bank Indonesia (BI) and the Monetary Authority of Singapore (MAS). While BI uses interest rates as its primary tool, MAS employs exchange rates to control inflation.
‘This strategy makes the Singapore dollar one of the world’s strongest currencies, indirectly ’punishing’ currencies with less stable fundamentals,’ she noted.
Third, psychological and real-world sentiment. For Indonesia’s middle class, Singapore is a destination for education, healthcare, and tourism. As the rupiah struggles against the Singapore dollar, living costs and access to quality regional services become increasingly unaffordable.