Bank Indonesia is preparing to roll out a tokenized digital currency initiative that introduces a government bond-backed “stablecoin version” of its central bank digital currency (CBDC), the digital rupiah. This development represents a major advancement in the country’s efforts to fuse blockchain technology with its financial infrastructure.
The announcement was made by Bank Indonesia Governor Perry Warjiyo during the Indonesia Digital Finance and Economy Festival and Fintech Summit 2025, held in Jakarta. Warjiyo revealed plans to issue digital central bank securities—digitized forms of government bonds (Surat Berharga Negara, or SBN)—that will be supported by the digital rupiah. This digital instrument is being positioned as Indonesia’s own iteration of a stablecoin.
According to Warjiyo, these digital securities will serve as sovereign-backed financial assets, offering a stable, tokenized investment vehicle tied to the value of government bonds. “We will issue Bank Indonesia securities in digital form—digital rupiah underpinned by SBN, essentially Indonesia’s national version of a stablecoin,” he stated during his keynote address.
The introduction of this stablecoin-like asset is a cornerstone in Bank Indonesia’s broader digital finance strategy. By embedding blockchain-based tokenization into the country’s monetary system, the central bank is taking concrete steps to modernize payment infrastructure and enhance financial inclusion, while reinforcing trust through government-backed assets.
Although stablecoins are not recognized as legal tender in Indonesia, their increasing role in digital payments and cross-border remittances has drawn the attention of regulators. The country’s Financial Services Authority (OJK) has started overseeing stablecoin activity, particularly from the perspectives of Anti-Money Laundering (AML) compliance and systemic financial stability.
Dino Milano Siregar, who heads the crypto and digital asset division at the OJK, noted that while stablecoins aren’t officially accepted for payments, they are already widely utilized as financial instruments for hedging. He emphasized that those tied to credible, reserve-backed assets—such as government bonds—are less prone to volatility than typical cryptocurrencies, making them attractive to both institutional and retail investors.
Indonesia has been rapidly adopting cryptocurrency and blockchain technologies. According to the 2025 Global Crypto Adoption Index by Chainalysis, the country ranks seventh overall in crypto usage. It also holds impressive standings in specific areas: ninth in retail activity, seventh in centralized exchange value received, and fourth in decentralized finance (DeFi) value received, signaling an active and growing participation in the global digital asset space.
These developments align with broader national interests. In a related move, Indonesian authorities have been exploring the possibility of integrating Bitcoin into the country’s financial reserves. Local advocates have reportedly engaged in discussions with government representatives, proposing that Bitcoin could serve as a strategic reserve asset to enhance economic resilience and stimulate long-term growth.
The digital rupiah itself has been under development as part of Bank Indonesia’s Project Garuda, a multi-phase CBDC framework that envisions a digital currency for wholesale and, eventually, retail use. The addition of tokenized government bonds as a stablecoin-like layer enhances the potential utility of the CBDC, making it not just a medium of exchange but also a platform for digital financial instruments.
Integrating tokenized securities into the monetary system could also pave the way for more transparent and efficient government bond markets. Digital bond tokens would be inherently trackable and programmable, streamlining issuance, settlement, and compliance processes. This could further attract institutional investors, both domestic and international, into Indonesia’s sovereign debt markets.
Moreover, the move may help reduce dependence on foreign currencies while strengthening the digital rupiah’s role in cross-border trade. With neighboring countries also exploring blockchain-based financial tools, Indonesia’s proactive approach in launching a government-backed digital asset positions it as a regional leader in financial innovation.
From a consumer perspective, the introduction of a stable, government-backed digital asset could encourage wider adoption of digital payments. It offers a secure alternative for individuals wary of the volatility typically associated with cryptocurrencies, while still providing the benefits of instant, low-cost transfers.
As Indonesia continues to shift toward a more digitized economy, the collaboration between regulatory bodies and financial institutions will be key in ensuring the safe deployment of blockchain technologies. The introduction of digital securities backed by SBN is just one part of a larger puzzle, which includes building legal frameworks, enhancing cybersecurity, and promoting digital literacy among the population.
In the long term, Indonesia’s embrace of a digitally tokenized financial ecosystem may help bridge the gap between traditional finance and decentralized models. If successfully implemented, the initiative could serve as a template for other emerging economies seeking to upgrade their financial systems without compromising stability or regulatory oversight.
By tying the stablecoin-like asset to government bonds, Bank Indonesia is not only providing a reliable store of value but also reinforcing the legitimacy of blockchain in state-backed finance. As the country continues to innovate, the digital rupiah and its stablecoin companion could redefine how money, investment, and trust are built in the digital age.