Bank Indonesia is currently investigating the possibility of introducing a digital version of the Indonesian currency known as “Digital Rupiah.” This initiative falls under the umbrella of “Project Garuda” and aims to explore the most optimal design for a Central Bank Digital Currency (CBDC) for the country. The project involves extensive research into various architectural options for the Digital Rupiah.
The primary objective of introducing the Digital Rupiah is to enhance security and efficiency compared to traditional cash and reserve accounts. Additionally, Bank Indonesia intends to bolster the resilience of payment systems through the implementation of Digital Rupiah.
The Digital Rupiah will be issued in two forms: wholesale Digital Rupiah (w-Digital Rupiah) and retail Digital Rupiah (r-Digital Rupiah). Both versions will be developed using a comprehensive end-to-end approach, covering the entire spectrum from wholesale to retail operations. The utilization of w-Digital Rupiah in the wholesale market is anticipated to foster the growth of financial markets and promote greater integration of digital economy and finance.
Bank Indonesia published a white paper in November 2022 exploring the opportunity to issue Indonesian CBDC ‘Digital Rupiah’.
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