The Central Bank of Indonesia plans to accelerate the digitalization of the payment system by creating the Digital Rupiah currency, as well as expanding international payment systems, in 2023.
In his speech at Bank Indonesia Annual Meeting, the Governor of Bank Indonesia discusses the economic accomplishments of the last year as well as their plans for the future, summarized in a report through six different sections.
The report was titled “Synergy and Innovation Strengthening Resilience and Economic Revival Towards Advanced Indonesia.” The report claims that the “direction of payment system policy remains based on the implementation of Indonesia Payment System Blueprint (BSPI) 2025.”
According to the first vision of the BSPI 2025, the payment system policy in 2023 will continue to accelerate and strengthen the integration of the national economic-financial digital ecosystem. Additionally, it will strive to be stronger and more able to compete in international collaboration based on national interests under the fifth vision.
However, the report highlighted that the payment system policy will be implemented in 2023 using five main strategies to integrate the national economic-financial digital ecosystem.
Five Stages For Deployment Of Digital Rupiah
The first step is the joint creation of national standards for “One Language” payment system services between Bank Indonesia and the sector, followed by acceptance campaigns and public usage by customers.
Secondly, in order to create strong, inventive, and competitive Indonesian unicorns that can compete both domestically and globally and who will eventually be able to act as a “wholesaler” in the issue and circulation of the Digital Rupiah, legislative change must be accelerated.
Additionally, the future development of One Homeland as a payment system infrastructure with 3i will accelerate the integration of an interconnected national economic-financial digital ecosystem and eventually be one prerequisite for issuing Digital Rupiah.
The fourth phase is to implement pricing policies and market practices that are secure, fair, and efficient to promote national interests, consumers, and industry competitiveness on a national and international scale.
The final and important step is the further development of Digital Rupees as a legal Central Bank Digital Currency (CBDC) in Indonesia, which will involve finalizing the conceptual design, business modeling, and preparation for technological platform requirements.
The Governor said:
we are launching the Digital Rupiah “white paper”, which we named “Project Garuda”, as a step to preserve the sovereignty of the Rupiah in digital ecosystem. This “white paper” contains the fundamental premise and roadmap to be taken.