Bank Indonesia has announced plans to issue tokenized government bonds (SBN) backed by the nation’s central bank digital currency (CBDC), the digital rupiah. The move marks a major milestone in Indonesia’s ongoing effort to modernize its financial infrastructure through blockchain integration.
Digital Rupiah to Power Blockchain-Based Bond Issuance
The tokenized bonds will be built on top of the digital rupiah, functioning as blockchain-based versions of traditional government securities. This initiative, described by officials as Indonesia’s “national stablecoin version,” forms part of Project Garuda, the country’s multi-phase CBDC roadmap.
Initially, Bank Indonesia plans to roll out a wholesale CBDC, designed for interbank transfers and settlement, before expanding the system to include retail-level use and wider financial market participation.
Regulation and Oversight
While privately issued stablecoins are not yet recognized as legal tender in Indonesia, authorities are taking a proactive stance toward digital asset regulation. The Financial Services Authority (OJK) is overseeing the rollout to ensure strict anti-money laundering (AML) compliance and integration with the country’s existing financial monitoring systems.
By tokenizing government bonds, Bank Indonesia aims to enhance transparency, efficiency, and liquidity in the bond market, enabling faster settlement and broader access for institutional investors.
What Tokenized Bonds Mean for Indonesia’s Financial Future
Tokenized government bonds represent a fusion of traditional finance and blockchain technology, offering secure, transparent, and programmable debt instruments. Backed by the digital rupiah, these assets could streamline public debt issuance, improve market access, and strengthen Indonesia’s monetary control mechanisms.
The initiative places Indonesia among a growing number of countries, including Singapore and Hong Kong, that are exploring CBDC-linked tokenization as part of next-generation monetary infrastructure.
As Project Garuda advances, Bank Indonesia’s pilot could serve as a blueprint for how sovereign-backed digital assetsreshape national bond markets and cross-border finance in Southeast Asia.