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Bank Indonesia to Digitalize Rupiah

Illustration or Logo of Bank Indonesia. REUTERS/Iqro Rinaldi/File Photo
TEMPO.CO, Jakarta – Bank Indonesia or BI Governor Perry Warjiyo stated that his side would carry out massive digitalization services in 2023. One of them is by launching the Garuda Project, an initiative that underlies the exploration of the design of Indonesia’s central bank digital currency (CBDC) or Digital Rupiah.

“We have published a consultative paper and met with big players whom we consider capable, and inshallah, we will issue a proof of concept around July,” said Perry when presenting BI’s Transparency and Accountability Report virtually on Monday, January 30, 2023.

According to him, Digital Rupiah will prepare Indonesia as a developed country through the digitalization of payments and decentralization of the rupiah. BI would also manage and deepen the money market to encourage economic and financial inclusion, MSMEs, the Islamic financial economy, and of course green economy.

“We will also push for the downstream project of the government and several other policies,” Perry added.

Quoted from BI’s official website, Digital Rupiah is BI’s contribution to the country in a bid to maintain rupiah sovereignty in the digital era. This project complements BI’s various initiatives in driving the national digital transformation agenda.

“In particular, efforts to integrate the digital economy and finance in an end-to-end manner have been encouraged through the 2025 Indonesian Payment System Blueprint (BSPI 2025) and 2025 Money Market Development Blueprint (BPPU 2025),” as read on the website.

As the first step, Bank Indonesia issued a White Paper on the development of Digital Rupiah on November 30, 2022. The White Paper is an initial presentation of the Garuda Project in the form of Digital Rupiah’s high-level design and a form of communication to the public regarding the plans.

Source: tempo