Key Takeaways
- Bank Indonesia plans to issue a national stablecoin backed by government securities (SBN) alongside its digital rupiah rollout.
- Governor Perry Warjiyo said the coin will be part of “Project Garuda,” the central bank’s CBDC framework.
- The Financial Services Authority (OJK) plans stricter oversight of stablecoins, including AML compliance and regular reporting.
Bank Indonesia (BI) plans to issue a national stablecoin backed by government securities, as part of its broader strategy to digitize the country’s financial system, Governor Perry Warjiyo said on Thursday.
Speaking at the Indonesia Digital Financial Economy Festival and Fintech Summit in Jakarta, Warjiyo said the central bank would not only launch a digital rupiah, but also develop a separate digital security backed by sovereign debt instruments (SBN), creating a central bank-issued stablecoin.
We will issue a security backed by Bank Indonesia, with a digital rupiah version underpinned by SBN. This will be Indonesia’s national stablecoin,
Stablecoins, which are usually pegged to traditional currencies such as the U.S. dollar, have gained popularity as a less volatile alternative to cryptocurrencies. Even though they are not recognized as legal tender in Indonesia, their growing use has drawn closer scrutiny from regulators.
The Financial Services Authority (OJK) recently signaled its intent to tighten oversight of stablecoin-related activities. Dino Milano Siregar, Head of Financial Sector Technology Innovation at OJK, said the authority would require compliance with anti-money laundering standards and periodic reporting obligations from entities dealing in stablecoins.
OJK will ensure stablecoins are included in market surveillance and regulatory monitoring. We’ve set specific rules that must be followed,” Siregar said at a recent industry event.
The plan is part of BI’s broader push to modernize the financial system by making digital payments more accessible and innovative, building a stronger financial industry foundation, and keeping the monetary system stable.
Indonesia’s Crypto Landscape and CBDC Push
Indonesia has taken a measured approach to regulating digital assets.
The central bank banned the use of cryptocurrencies for payments in 2017, stressing that the rupiah is the country’s sole legal tender.
However, regulators allowed crypto trading as a commodity under the oversight of the Commodity Futures Trading Regulatory Agency
The legal framework evolved in 2023 with the passage of the Financial Sector Development and Strengthening Law, which shifted supervision of crypto assets to the Financial Services Authority (OJK).
The change aims to tighten oversight, standardize licensing, and bring exchanges and custodians under stricter compliance rules, including anti-money-laundering measures.
At the same time, Bank Indonesia has been advancing its central bank digital currency, known as the digital rupiah, through “Project Garuda.” The plan outlines a phased rollout, starting with a wholesale version for interbank transactions before expanding to public use.
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