Bank Indonesia to Roll Out Digital Rupiah-Backed Stablecoin Anchored by Government Bonds
Bank Indonesia is preparing to introduce a sovereign digital stablecoin, designed to mirror the stability of traditional fiat but powered by blockchain technology. This new digital instrument will be backed by Indonesian government bonds (Surat Berharga Negara, or SBN) and tied to the central bank’s own digital rupiah — the country’s central bank digital currency (CBDC).
Speaking at the Indonesia Digital Finance and Economy Festival and Fintech Summit 2025 in Jakarta on October 30, Governor Perry Warjiyo detailed the initiative, labeling it as Indonesia’s national equivalent of a stablecoin. According to Warjiyo, this digital financial product will function similarly to stablecoins pegged 1:1 to U.S. Treasury bonds, with the key distinction being its foundation in Indonesian sovereign assets.
Warjiyo emphasized the central bank’s commitment to issuing digital securities supported by government debt, which will serve as a complement to the emerging digital rupiah. The combination of tokenized government bonds and a digital currency under the supervision of the central bank aims to create a secure and regulated alternative to existing private-sector stablecoins.
The concept builds upon years of development, with Bank Indonesia having launched the first phase of the digital rupiah by the end of 2024, known as the “Immediate State.” During this phase, the central bank successfully completed a proof-of-concept for its Wholesale Digital Rupiah Ledger, laying the technological foundation for broader integration into Indonesia’s financial system.
The digital rupiah is intended to be seamlessly integrated into the current payment infrastructure, enabling both domestic and international transactions. This integration reflects a strategic effort by Bank Indonesia to modernize the country’s monetary system, reduce reliance on cash, and participate in the global shift toward digital finance.
The development is aligned with Bank Indonesia’s broader three-pillar strategy: promoting digital innovation and adoption, reinforcing institutional structures, and ensuring long-term financial stability. By launching its own stablecoin, Indonesia aims to enhance the global presence of the rupiah while safeguarding its financial sovereignty in the face of increasing foreign stablecoin influence.
This move also responds to the growing traction of stablecoins within the Indonesian economy, especially following the steep depreciation of the rupiah, which hit a record low of Rp16,850 against the U.S. dollar in April 2025. The weakening currency led to a noticeable surge in demand for stablecoins as a store of value and a medium of exchange.
The Financial Services Authority of Indonesia (OJK) has acknowledged the rising use of stablecoins, even though they are not officially recognized as legal payment instruments. OJK has placed them under regulatory oversight, requiring exchanges and traders to comply with anti-money laundering (AML) protocols and submit regular operational reports.
Dino Milano Siregar, head of OJK’s department for Financial Sector Technology Innovation and Crypto Assets, confirmed that stablecoins fall under active monitoring and supervision. He noted that businesses dealing with these assets must adhere to stringent regulatory standards, ensuring transparency and consumer protection.
Despite these regulatory steps, Indonesia is not alone in its pursuit of national stablecoins. Across Asia, major economies like China and Hong Kong are accelerating similar developments. Hong Kong’s Legislative Council has recently explored the possibility of launching offshore stablecoins anchored to the renminbi, seeking support from the Chinese central government. Both regions are also advancing their own CBDCs — the e-HKD and digital yuan, respectively — as tools to challenge the dominance of the U.S. dollar in digital finance.
Indonesia’s entry into this space signifies a growing recognition among emerging markets of the strategic importance of monetary digitization. By leveraging tokenized government bonds, Bank Indonesia seeks to offer a transparent, regulated, and sovereign-backed digital currency that could appeal to institutional investors, fintech firms, and cross-border traders.
Moreover, this initiative may serve as a buffer against private stablecoins that are often criticized for their opaque asset backing and regulatory gaps. With central banks struggling to maintain monetary control in a decentralized financial ecosystem, sovereign-backed digital assets may offer a middle ground — preserving national oversight while embracing innovation.
As the project advances, attention will turn to how the central bank plans to ensure interoperability with existing global financial networks, especially the SWIFT system, and whether the digital rupiah and associated stablecoin will be made available for retail use or limited to wholesale and institutional markets.
Experts also speculate that Indonesia’s national stablecoin could become a vital tool in supporting trade within the ASEAN region, particularly if cross-border CBDC interoperability is achieved. Such a development would facilitate cheaper, faster, and more secure cross-border payments — a long-standing challenge in Southeast Asia.
In the longer term, Bank Indonesia’s dual-track approach — combining a CBDC with tokenized government securities — may serve as a model for other developing countries seeking to modernize their economies without ceding monetary control to foreign digital currencies or private stablecoins.
While the full launch timeline has not been disclosed, the groundwork laid so far suggests that the national stablecoin project is progressing steadily. The next phases will likely involve pilot testing, stakeholder consultations, and the establishment of legal frameworks to support widespread adoption.
In conclusion, Indonesia’s move to issue a government bond-backed stablecoin signals a major step toward sovereign digital finance. It reflects a proactive stance in shaping the future of money — one where central banks remain at the helm, but with tools that match the speed, efficiency, and transparency of blockchain technology.