Bank Indonesia to Launch National Stablecoin Backed by Government Bonds

Bank Indonesia, the country's central bank, has announced plans to issue a national stablecoin backed by government bonds, as revealed by Governor Perry Warjiyo at the Indonesia Digital Finance and Economy Festival and Fintech Summit 2025 in Jakarta on October 30. The initiative involves tokenized versions of Indonesia's government bonds (SBN), which will be derived from the digital rupiah, the nation's central bank digital currency (CBDC). Warjiyo described this as "Indonesia's national version of a stablecoin," noting its similarity to stablecoins backed 1:1 with U.S. government bonds.

The development aligns with Bank Indonesia's efforts to strengthen the rupiah, which hit a record low of Rp16,850 per U.S. dollar in April 2025, and to join the regional stablecoin race. The digital rupiah project, underway since 2022, completed its first phase, the "Immediate State," by the end of 2024, including a Proof of Concept for the Wholesale Rupiah Digital Cash Ledger. The central bank aims to integrate the digital rupiah with existing payment systems and financial market infrastructure to support domestic and cross-border transactions.

Regulatory oversight is provided by the Financial Services Authority (OJK), which has intensified monitoring of stablecoin usage due to its growing role in payments and remittances. Dino Milano Siregar, head of OJK's crypto and digital asset division, emphasized that stablecoins are subject to anti-money laundering rules and periodic reporting requirements, even though they are not yet recognized as official payment instruments in Indonesia.

Indonesia ranks seventh in global crypto adoption, according to Chainalysis's 2025 index, with strong performance in retail activity, centralized service value, and DeFi. The government has also explored Bitcoin as a reserve asset to drive economic growth. This move mirrors trends in other Asian countries, such as Hong Kong and China, which are advancing local currency-backed stablecoins to reduce U.S. dollar dominance in the market.