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Bank Indonesia (BI), the country’s central bank, has announced plans to issue tokenized government bond–backed digital securities, which it describes as Indonesia’s “national stablecoin version.”
The initiative, revealed by Governor Perry Warjiyo during the Indonesia Digital Finance and Economy Festival and Fintech Summit 2025 in Jakarta, marks a significant milestone in the nation’s financial digitalization strategy.
According to a report by CNBC Indonesia, the tokenized government bond–backed digital securities will be tied to the digital rupiah, Indonesia’s upcoming central bank digital currency (CBDC).
The new instruments—known formally as digital central bank securities—will be backed by sovereign bonds (SBN), enabling the integration of blockchain technology into the country’s monetary system.
“We will issue Bank Indonesia securities in digital form, the digital rupiah with underlying SBN, Indonesia’s national version of a stablecoin,” Perry Warjiyo, Governor, Bank Indonesia.
The tokenized government bond–backed digital securities are designed to combine the credibility of state-backed assets with the flexibility of digital money, creating a hybrid form of stability and innovation.
Bank Indonesia’s latest move is part of a broader effort to align financial infrastructure with the digital economy. The introduction of tokenized government bond–backed digital securities would be the first instance of sovereign bond tokenization tied directly to a national CBDC in Southeast Asia.
While private stablecoins remain outside Indonesia’s legal tender framework, regulators have shown increasing interest in their economic potential. The country’s Financial Services Authority (OJK) has begun overseeing the use of stablecoins, focusing on transparency and anti–money laundering safeguards.
Dino Milano Siregar, head of the OJK’s crypto and digital asset division, explained that stablecoin traders are required to comply with AML rules and periodic reporting standards, reflecting the regulator’s proactive stance on digital asset oversight.
“These assets are tradable and far less volatile than other cryptocurrencies,” Dino Milano Siregar, Head of Crypto and Digital Assets Division, OJK.
By backing its CBDC-linked securities with sovereign bonds, Indonesia aims to maintain monetary control while leveraging blockchain transparency—positioning the tokenized government bond–backed digital securities as both a fiscal instrument and a technological innovation.
The tokenized government bond–backed digital securities will effectively function as a stablecoin alternative within the national financial system, allowing seamless digital transactions backed by tangible state assets. The central bank’s framing of the initiative as a “stablecoin version” highlights its intent to provide a secure, compliant counterpart to privately issued digital currencies.
This approach contrasts with speculative cryptocurrencies by prioritizing value stability, traceability, and state oversight. While the assets are not yet formally recognized as payment instruments, their introduction under the CBDC framework could pave the way for a regulated digital finance ecosystem.
The move aligns with Indonesia’s long-term plan to modernize its payment infrastructure and reduce reliance on volatile private crypto assets. The tokenized government bond–backed digital securities could also enhance cross-border settlement efficiency and domestic liquidity management.
The announcement comes amid Indonesia’s growing prominence in global digital asset adoption. According to the 2025 Global Crypto Adoption Index by Chainalysis, Indonesia ranks seventh worldwide, performing strongly across centralized and decentralized finance (DeFi) activity.
Meanwhile, domestic crypto engagement continues to expand. Local advocacy group Bitcoin Indonesia disclosed in August that discussions are underway with government officials on potentially adopting Bitcoin (BTC) as part of Indonesia’s reserve assets—a move that could further diversify the nation’s financial portfolio.
With such developments, Indonesia’s digital finance ecosystem is evolving rapidly—from consumer adoption to institutional experimentation. The launch of tokenized government bond–backed digital securities underlines this transformation, signaling a pragmatic embrace of blockchain innovation without compromising regulatory oversight.
As the line between traditional finance and digital assets continues to blur, Indonesia’s initiative could serve as a model for emerging economies seeking to balance innovation with stability. The combination of CBDC architecture and sovereign bond tokenization represents a cautious but forward-looking approach to digital monetary evolution.
With tokenized government bond–backed digital securities, Bank Indonesia is effectively crafting a bridge between fiat reliability and blockchain efficiency—offering a new lens for how central banks can manage liquidity and promote trust in digital assets.
If successful, Indonesia’s experiment could redefine how national financial systems approach tokenization, regulation, and monetary sovereignty in the coming decade.
