BI launches national stablecoin plan based on digital rupiah and government bonds.
JAKARTA – Bank Indonesia has officially unveiled a comprehensive plan to develop a national stablecoin backed by digital rupiah and government securities.
This initiative forms a key part of the central bank’s roadmap for developing a central bank digital currency (CBDC) and marks a significant step forward for Indonesia in digital financial innovation across Southeast Asia.
Bank Indonesia Governor Perry Warjiyo announced the initiative at the Indonesia Financial & Digital Economy Festival 2025 in Jakarta on 30 October.
The programme places Indonesia at the forefront of CBDC exploration and demonstrates the country’s commitment to integrating blockchain technology into a regulated financial system.
According to Bank Indonesia, the project involves issuing tokenised government bonds (Surat Berharga Negara or SBN) backed by sovereign debt and digital rupiah. This approach creates an “Indonesian version of a stablecoin” — a digital instrument with stable value, supported by state assets and overseen by monetary authorities.
The tokenised SBN will serve as the foundation for the national digital economy, offering a secure, transparent, and efficient framework for transaction settlement and liquidity. The initiative is part of Project Garuda, a multi-phase programme aimed at enhancing interoperability between financial institutions, payment systems, and capital markets.
Warjiyo emphasised that this does not yet constitute a full retail CBDC launch.
“The rollout of tokenised SBN aligns with Indonesia’s digital transformation agenda and will play a vital role in building a resilient, inclusive, and modern financial system,” he said.
Bank Indonesia is also collaborating with financial institutions, fintech firms, and international partners to test technical infrastructure, cybersecurity, and regulatory frameworks.
The project reflects a broader global trend, with central banks in Asia — including Singapore, Hong Kong, and Japan — also experimenting with blockchain-based securities.
By linking the national stablecoin to digital rupiah and government bonds, Indonesia aims to safeguard monetary sovereignty while strengthening its technological standing in the region.
Although no public launch date has been announced, Bank Indonesia stated that the pilot phase of Project Garuda will continue through 2026, focusing on transaction efficiency, cross-border interoperability, and risk mitigation.
Analysts believe this approach could serve as a model for other developing nations seeking to balance digital innovation with monetary stability.
Through this initiative, Indonesia reaffirms its role as a pioneer in Southeast Asia, bridging decentralised finance and conventional monetary policy via a regulated, asset-backed stablecoin.
Stablecoins — particularly those pegged to the US dollar rather than local currencies — are rapidly gaining traction in the United States. However, India and China have firmly rejected them.
India’s Chief Economic Adviser, V. Anantha Nageswaran, stated that India has little need for stablecoins due to its existing Unified Payments Interface (UPI).
He added that the rising popularity of dollar-based stablecoins will become a major trend next year and could pose challenges to global monetary policy. “The presence of dollar stablecoins will bring unique challenges to monetary policy, transmission mechanisms, and a nation’s seigniorage benefits,” Nageswaran said at an event in Mumbai, as quoted by Reuters on Wednesday (29 October). (DH/LM)
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