Indonesia’s central bank, Bank Indonesia (BI), is advancing its digital finance agenda by planning a new instrument it describes as a “national stablecoin version” of its digital rupiah. The proposed variant will be backed by government bonds (SBN) and sit alongside the planned central-bank digital currency (CBDC).
Bank Indonesia Governor Perry Warjiyo announced the initiative during the Indonesia Digital Finance and Economy Festival 2025 in Jakarta. He said the bank will issue digital securities tokenised via the digital rupiah and backed by national bond holdings, effectively creating Indonesia’s version of a fiat-pegged digital asset.
Bridging CBDCs and Stablecoins
The move is significant because it combines three major trends: central-bank digital currencies, stable-coin design and blockchain infrastructure. By linking digital rupiah issuance to SBN bond backing, Indonesia aims to ensure stability and credibility while exploring tokenised payment rails.
While stablecoins are not yet recognised as legal tender in Indonesia, the country’s financial-services regulator has begun overseeing the use of such tokens. Officials have noted that some stablecoins, especially those backed by tangible assets, are being used for hedging and payment flows already.
For emerging-market policymakers, Indonesia’s approach provides a template: a sovereign-backed digital instrument that offers tokenisation benefits without full exposure to crypto volatility.
Implementation Challenges and Future Impact
The digital-rupiah companion may accelerate Indonesia’s payments modernisation and deepen financial-inclusion efforts. If the bond-backed variant delivers as intended, it might attract domestic and international users seeking tokenised rupee settlement and stable-value digital storage.
However, challenges abound. Implementing a tokenised bond structure raises questions around liquidity, redenomination risk, regulatory clarity and cross-border usage. Observers will watch how quickly Bank Indonesia finalises the legal framework, how the tokens are issued and redeemed, and whether the infrastructure connects with private-sector payment networks.
As previously covered, the intersection of CBDCs and tokenised assets is evolving into a key frontier for financial-system innovation – Indonesia’s experiment may offer a case study in how sovereign digital money and asset-backed tokens converge.
