Bank Indonesia Shakes Up Finance Sector with National Stablecoin Launch Plan
Central banks worldwide are racing to digitize sovereignty—and Bank Indonesia just fired the starting gun.
The Digital Rupiah Revolution
Indonesia's central bank confirms development of a state-backed stablecoin, positioning the digital rupiah as both monetary tool and technological statement. This isn't just another CBDC experiment—it's a direct challenge to dollar dominance in Southeast Asian trade corridors.
Traditional banks watch nervously as blockchain infrastructure bypasses legacy systems. Cross-border settlements that once took days could shrink to seconds. Local businesses gain instant access to global markets without currency conversion headaches.
Regulators promise stability while crypto natives whisper about missed opportunities for decentralization. Another case of institutions co-opting disruptive technology while maintaining control—because nothing says financial innovation like government oversight.
Bank Indonesia gravitates towards stablecoins
The development of the digital rupiah alongside a stablecoin backed by governments bonds aligns with the Bank Indonesia’s three pillars. Bank Indonesia aims to expand acceptance and innovation, strengthen industrial structures, and maintain industrial stability.
The declaration from Bank Indonesia Governor Perry Warjiyo marks the first instance of the central bank’s growing interest to pursue a stablecoin venture to raise the rupiah’s standing in the global financial system.
Indonesia’s Financial Services Authority known as OJK had previously highlighted the spike in stablecoin usage in Indonesia, which grew prominent following the fall of the Indonesian rupiah to Rp16,850 per U.S dollar in April 2025, surpassing previous record lows for the currency.
Although stablecoins have not yet been recognized as an official payment option in Indonesia, the OJK has acknowledged its significant role in terms of utility and transaction volume.
“The OJK ensures that stablecoins are included in the exchange monitoring system and the supervision of each trader. We have established certain rules that must be met,” said Head of the Financial Sector Technology Innovation, Digital Financial Assets, and crypto Assets Department at the OJK, Dino Milano Siregar to CNBC Indonesia.
Siregar stated that OJK has implemented several regulations that industry players must comply with, including compliance with anti-money laundering principles and the obligation to submit regular reports by traders.
That being said, Bank Indonesia appears to be playing catchup to other major states which have also expressed interest in developing stablecoins backed by their local currencies.
Other Asian countries including Hong Kong and China have been pushing for local currency-backed stablecoins to combat the U.S dollar’s domination over the stablecoin market.
A report from Hong Kong’s Legislative Council revealed that the special administrative region is seeking support from the Chinese central government to explore the development of offshore Renminbi-backed stablecoins. On the other hand, both Hong Kong and China have also accelerate developments on their respective digital currencies, the e-HKD and the digital yuan.
