Indonesia’s central bank has unveiled a project that bridges the worlds of cryptocurrencies and traditional finance. The digital rupiah will get its “stable” version backed by government bonds, moving the country closer to a fully digital economy.

Indonesia launches an ambitious experiment

The central bank, Bank Indonesia (BI), announced plans to issue digital securities backed by government bonds. These won’t be just ordinary digital tokens – they’ll be built on the digital rupiah, a central bank digital currency (CBDC)developed by the state.

Governor Perry Warjiyo introduced the plan at the Fintech Summit 2025 in Jakarta, describing it as a “national version of a stablecoin” – a digital currency with a stable value ensured by government backing.

“We will issue Bank Indonesia securities in digital form – a digital rupiah backed by government bonds, our own version of a stablecoin,” said Warjiyo.

What does it mean?

Stablecoins – cryptocurrencies with fixed value (for example, 1 coin = 1 USD) – are usually backed by cash reserves or fiat currencies. Indonesia, however, has chosen a different path: its stablecoin will be backed by government bonds (SBN).

In simple terms, it will be a digital version of government securities recorded on the Blockchain. Indonesia aims to connect traditional finance with modern technology while reinforcing trust in a digital currency controlled by the central bank.

Stablecoins under supervision

Stablecoins are not yet recognized as legal tender in Indonesia, but the financial authority OJK (Otoritas Jasa Keuangan) already monitors and regulates them. According to Dino Milan Siregar, head of the crypto and digital assets division, traders must comply with anti-money laundering (AML) rules and regularly submit reports.

“Stablecoins cannot officially be used for payments, but they already serve as a tool for hedging against market fluctuations. They are less volatile than regular cryptocurrencies,” Siregar explained.

Cryptocurrencies on the rise in Indonesia

Indonesia has become one of the most active crypto markets in the world. According to the Chainalysis 2025 Global Crypto Adoption Index, it ranks seventh globally, driven by the growing interest in DeFi (decentralized finance) and exchange trading.

In August, Bitcoin Indonesia revealed that the government is considering adding bitcoin to its official reserve assets to support economic growth through cryptocurrency.

Digital rupiah as a gateway to the future

Linking the digital rupiah with tokenized government bonds could position Indonesia among Asia’s technological leaders. If successful, the project would create a unique model of a state-controlled digital economy. The digital rupiah could become a secure alternative to conventional cryptocurrencies – stable, transparent, and backed by real assets.

Sources:

https://www.cnbcindonesia.com/market/20251030104657-17-680628/bos-bi-ungkap-rencana-rilis-stablecoin-versi-ri

https://cointelegraph.com/news/indonesia-s-digital-rupiah-cbdc-to-get-stablecoin-twist-with-government-bond-backing