Bank Indonesia is entering a new era of monetary innovation with the development of the Digital Rupiah, a central bank digital currency (CBDC) designed to function like a stablecoin but under full regulatory control. Bank Indonesia (BI) aims to make the Digital Rupiah a legal digital payment instrument, backed by government securities and integrated into the national financial system. As global interest in CBDCs grows, Indonesia’s Project Garuda positions the country at the forefront of sovereign digital currency design.
Key Facts & Background
- Issuer: Bank Indonesia (BI)
- Currency type: Central Bank Digital Currency (CBDC), not cryptocurrency
- Name: Digital Rupiah (Rupiah Digital)
- Stability mechanism: Backed by tokenized government bonds (Surat Berharga Negara/SBN)
- Project name: Project Garuda
- Blueprint reference: Part of BI’s Blueprint Sistem Pembayaran Indonesia (BSPI) 2030
- Development stages:
- Stage 1 (Immediate): Wholesale Digital Rupiah (w-Rupiah Digital) testing completed in 2024
- Stage 2 (Intermediate): Securities ledger experimentation underway
- Stage 3 (End State): Full integration of wholesale and retail Digital Rupiah (r-Rupiah Digital)
- Use cases:
- Legal digital payment instrument
- Monetary policy tool
- Financial inclusion enabler
- Efficiency booster for payment systems
- Public statements:
- Governor Perry Warjiyo and Deputy Governor Filianingsih Hendarta confirmed development at FEKDI x IFSE 2025
Strategic Insights
The Digital Rupiah initiative reflects Indonesia’s strategic response to the rapid evolution of digital finance and the global rise of stablecoins and cryptocurrencies. Unlike decentralized crypto assets, the Digital Rupiah is a sovereign instrument—issued, regulated, and backed by BI—ensuring monetary control and legal certainty. Its design, anchored in tokenized government bonds, offers a unique blend of stability and transparency, positioning it as one of the world’s first CBDCs with a formal asset-backed structure.
Project Garuda’s phased approach allows BI to test and refine the Digital Rupiah’s functionality across wholesale and retail domains. The initial wholesale phase focused on interbank transactions and liquidity management, while the current intermediate phase explores securities ledger applications—critical for deepening capital markets and enhancing settlement efficiency. The final integration phase will unify retail and wholesale use cases, enabling seamless digital payments for consumers and institutions alike.
Beyond technical innovation, the Digital Rupiah serves broader national goals. It reinforces rupiah sovereignty in the face of global crypto adoption, supports financial inclusion by offering secure digital alternatives to cash, and enhances the central bank’s ability to implement monetary policy in real time. These capabilities are vital for managing inflation, stabilizing exchange rates, and responding to economic shocks in a digitized economy.
The initiative also signals Indonesia’s ambition to lead in regional digital finance. By embedding blockchain technology and regulatory safeguards into its CBDC architecture, BI is creating a model that balances innovation with institutional trust. This could attract cross-border partnerships, facilitate trade settlement, and elevate Indonesia’s role in shaping global digital currency standards.
As BI moves into the securities experimentation phase, stakeholder engagement will be key. Collaboration with banks, fintechs, and regulators will ensure interoperability, cybersecurity, and user adoption. Public education will also be essential to demystify CBDCs and build confidence in their use.