Bank Indonesia (BI) has officially completed the Proof of Concept (PoC) for Rupiah Digital in its first stage, known as the Immediate State – Wholesale Cash Ledger. This marks a significant milestone in the development of Indonesia’s central bank digital currency (CBDC) and lays the groundwork for the next phases of BI’s ambitious Project Garuda.
Ramdan Denny Prakoso, Executive Director of BI’s Communication Department, highlighted that the PoC follows three prior phases initiated in 2022: the White Paper, Consultative Paper, and Public Consultation Report.
“The PoC is a strategic step by the central bank to test the readiness of technology that will support the business model for Rupiah Digital,” Ramdan stated in an official release on Friday (13/12).
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Comprehensive Testing for a Reliable Digital Rupiah
Ramdan explained that the testing process was conducted comprehensively, focusing on three critical aspects: technical feasibility, transaction security, and interoperability with existing payment systems and financial infrastructure. These aspects are essential to ensure the Rupiah Digital system delivers efficient, secure, and reliable services.
“Every stage of technological testing plays a crucial role in enriching ideas, exploring innovations, and validating pre-designed concepts,” Ramdan noted.
The PoC testing utilized Distributed Ledger Technology (DLT) platforms, which were rigorously evaluated to ensure alignment with the long-term projections of the Rupiah Digital business model.
Two DLT platforms were tested during the PoC: R3 Corda – centralized notary validation with a directed acyclic graph (DAG)-based data structure, and Hyperledger Besu – decentralized proof-of-authority validation with a blockchain-based structure. These platforms were chosen for their robustness, scalability, and ability to handle critical aspects such as privacy, performance, and interoperability.
The PoC successfully met all 55 test scenarios, demonstrating that DLT-based technology solutions can fulfill the business and technical needs of the Wholesale Rupiah Digital Cash Ledger. Smart contracts were also tested to automate key processes, improving transaction efficiency and flexibility.
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What Comes Next?
The PoC is part of Bank Indonesia’s broader vision outlined in the Indonesia Payment System Blueprint 2030, which aims to build an inclusive, efficient, and resilient payment ecosystem. Under Project Garuda, BI will continue refining the Rupiah Digital design, expanding its scope to include:
- Liquidity Management Mechanisms for financial institutions.
- Cross-border transactions to enable seamless global payments.
- Digital asset integration to support securities and other tokenized assets.
- Privacy enhancements and decentralization with multi-validator deployment.
The completion of the Proof of Concept for the Rupiah Digital is a milestone in Indonesia’s journey toward a modernized financial system. As Bank Indonesia advances Project Garuda, Rupiah Digital has the potential to enhance global competitiveness and create a resilient digital economy through innovation and collaboration.
Indonesia is advancing boldly into the digital economy, and ICN is here to help. With our expertise and network, we can guide your project through Indonesia’s dynamic digital currency landscape. Book a call today and explore how ICN can boost your success in Indonesia’s financial ecosystem.
