Bank Indonesia (BI) is moving forward with trials for a Digital Rupiah as policymakers respond to the rapid expansion of private cryptocurrencies and stablecoins. Governor Perry Warjiyo said the central bank has begun formal experimentation as part of its broader strategy to modernize the national payment system.
“We are conducting the experiment to issue the Digital Rupiah as the only legal digital payment instrument in Indonesia,” Warjiyo said during BI’s 2025 Annual Meeting in Jakarta.
The initiative is a core pillar of the Indonesian Payment System Blueprint 2030, BI’s long-term roadmap for digital integration, monetary stability, and broader financial inclusion.
Read more: Bank Indonesia Marks Major Milestone with Rupiah Digital Proof of Concept
BI Flags Crypto Risks but Signals Support for a Regulated Ecosystem
Warjiyo said the acceleration of the Digital Rupiah is partly driven by the rising use of private cryptocurrencies and stablecoins without comprehensive regulatory oversight.
“With the rapid growth of private cryptocurrencies and stablecoins, and without clear regulation and supervision, the need for a central bank digital currency becomes critical,” he said.
Still, BI stressed that the CBDC initiative should not be interpreted as opposition to crypto. Indonesia remains one of the world’s most active digital-asset markets, with trading overseen by the Financial Services Authority (OJK) and a national crypto exchange already in place.
The Digital Rupiah is designed to complement, not displace, regulated digital-asset activity, providing guardrails for private tokens while reinforcing payment-system resilience.
Read more: Indonesia’s Role in Global DeFi & Stablecoin Adoption Trends in 2025
Purpose and Design of the Digital Rupiah
The Digital Rupiah is envisioned as a sovereign digital currency that functions similarly to cash, electronic money, and card-based instruments. While it shares stability characteristics with stablecoins, it is not a crypto asset but a CBDC fully issued and backed by BI.
The rollout aligns with broader upgrades across Indonesia’s payment infrastructure, including:
- BI-FAST expansion for low-cost instant transfers
- RTGS modernization
- Reclassification of payment service providers
- QRIS usage, now reaching around 60 million users
The Digital Rupiah aims to improve efficiency, enhance monetary control, and expand access to secure digital payments nationwide.
Project Garuda: Technical Trials Underway
Development is progressing under Project Garuda, which has entered the proof-of-concept phase. BI is testing two architectural models, a centralized system and a decentralized or distributed framework. Both are being assessed for security, scalability, and operational performance.
The first rollout will use a wholesale CBDC model, distributing Digital Rupiah through selected banks acting as primary intermediaries. This supports interbank settlement and potential use cases such as digital securities.
The multistage roadmap includes sandbox trials, pilots, and prototyping ahead of broader deployment. BI has also outlined long-term liquidity goals, including Rp81 trillion in daily money-market turnover and US$18 billion in daily FX activity by 2030.
Read more: Indonesia–Singapore Deepen FinTech & Digital Asset Ties with New MoU
Implications for Banks, Fintechs, and Digital-Asset Platforms
The Digital Rupiah will reshape settlement and payment operations across the financial sector. Expected impacts include:
- New settlement rails for banks and fintechs
- Reduced reliance on private stablecoins for domestic transfers
- Clearer regulatory alignment for digital-asset flows
- Higher operational requirements for exchanges and custodians
For crypto platforms, the CBDC is expected to coexist with regulated digital-asset activity. BI’s approach seeks to secure the payment landscape while allowing innovation to continue under OJK oversight.
BI’s Digital Rupiah initiative reflects a broader effort to strengthen the foundations of Indonesia’s digital economy. The trials aim to improve stability, support innovation, and build a payment system where CBDCs and regulated digital assets can operate alongside each other.
With development accelerating, the Digital Rupiah is positioned to become a central component of Indonesia’s evolving financial architecture.
