Three Reasons for Bank Indonesia to Issue Digital Rupiah

in blurt-network •  last year 

The Governor of Bank Indonesia, Perry Warjiyo, revealed that there were three reasons for Bank Indonesia to issue Digital Rupiah. This was conveyed by Perry at the Walk the Path to Digital Rupiah event, Monday (5/12/2022).


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The first reason, Perry said, is that Bank Indonesia is the only state institution authorized to issue a digital currency called Digital Rupiah, the others are not legal.

The second reason is because Bank Indonesia wants to serve the public. Although some people still use conventional means of payment, namely using paper money, there are also those who use electronic money, such as debit or credit cards.

"Currently there are people who still use Rupiah banknotes as payment, then there are those who still use account-based payments. However, our children and grandchildren need digital payments, therefore BI will facilitate this by issuing Digital Rupiah," Perry explained.


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The third reason for Perry said that with the existence of this digital rupiah, it could be used for international cooperation with other countries. Bank Indonesia is also working with other central banks in the world to develop CBDCs.

“We have agreed on what the CBDC will look like in the G20 for financial inclusion, then how the CBDC can work internationally. So BI issued a CBDC so that we can continue to carry out international cooperation, therefore in the future there will be an exchange rate of Digital Rupiah, digital dollar, digital ringgit," said Perry.

Perry emphasized that the existence of Digital Rupiah as a means of payment does not mean that paper money and debit cards or payments via electronic wallets will be eliminated. Everything will still be there, because BI wants to serve all the needs of society.

Indonesia Will Have Digital Rupiah through the Garuda Project

Previously, Bank Indonesia (BI) released the digital rupiah development design or white paper. BI Governor Perry Warjiyo revealed that this digital rupiah project is called the Garuda Project.


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The launch was carried out in a series of Bank Indonesia Annual Meeting at the Jakarta Convention Center (JCC) Senayan, Jakarta. According to him, the implementation of digital rupiah will be carried out in 3 stages.

"Development of digital rupiah as the only legal digital payment instrument in Indonesia. Today with the approval of the President, we are launching a digital rupiah white paper which we call the Garuda Project," Perry said in his remarks, at the JCC Senayan, Jakarta, Wednesday (30/11/2022).

For your information, this White Paper outlines the formulation of a central bank digital currency (CBDC) for Indonesia by considering the principles of benefits and risks. The issuance of this WP is the first step entitled the Garuda Project, which is a project that underlies various exploration initiatives for various architectural design options for Digital Rupiah.

"Digital Rupiah will be implemented in stages, starting from wholesale CBDC for issuance, destruction and interbank transfers. Then it will be expanded to monetary and money market operation business models, and finally to the integration of wholesale Digital Rupiah with Digital Rupiah retail in an end to end manner," said Perry.


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"Of course there is synergy and collaboration nationally and internationally. We will also accelerate financial market deepening," he continued.

Perry said, the key to the development of Digital Rupiah consists of 3 aspects. First, Affirming the function of BI as the sole authority in issuing currency including digital currency (sovereignty Digital Rupiah). Second, Strengthening the role of BI in the international arena. Third, accelerating the integration of EKD nationally.


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