Indonesia pioneers bond-backed digital rupiah in global CBDC race

31st October 2025 – (Jakarta) Indonesia’s central bank has unveiled an innovative framework for its digital currency that will integrate stablecoin mechanics, positioning the digital rupiah among the world’s first sovereign digital currencies backed by government securities. The announcement was made by Bank Indonesia Governor Perry Warjiyo at the Indonesia Digital Finance and Economy Festival and Fintech Summit 2025 in Jakarta.

The new model will see the digital rupiah supported by tokenised government bonds, known locally as Surat Berharga Negara. This approach effectively creates what officials term a “national stablecoin,” merging the security of central bank issuance with the stability of asset-backed digital tokens. Governor Warjiyo confirmed the institution would issue “digital Bank Indonesia rupiah with underlying government bonds” alongside a national stablecoin version.

This development represents the latest phase of Indonesia’s financial digitalisation strategy under Project Garuda. The initiative builds upon a proof-of-concept trial completed in December 2024 that tested distributed ledger technology platforms for currency issuance and transfers. The bond-backed design will utilize tokenised government securities issued atop the CBDC infrastructure, aiming to enhance market liquidity through faster settlement and reduced transaction costs.

Unlike privately issued stablecoins that carry credit and issuer risks, the digital rupiah will function as a direct liability of the central bank. This structure is intended to bolster public trust while providing more efficient domestic and international payment channels. The rollout will proceed through phased implementation, beginning with wholesale applications for interbank transfers before expanding to retail usage.