The Governor of Bank Indonesia, Perry Warjiyo, has just revealed and explained the latest progress on forming the Indonesian Digital Rupiah or Central Bank Digital Currency (CBDC).

It was stated in the Commission XI DRP Fit and Proper Test session that Digital Rupiah would be published in 2024. Perry Warjiyo explained that Bank Indonesia had issued official documents related to the Digital Rupiah project.

This program has also been given a name and will be referred to as the Garuda Project for a complete presentation of the Digital Rupiah project design in July.

In the Commission XI meeting room at the DPR Building, Jakarta, Perry Warjiyo said: "We are in the process of issuing Digital Rupiah, and this project, as we have said, if the consultative paper has been published, and in July the project design will be published,"

"This project will be developed with the industry in the next 1.5 years. And this is done by focusing on wholesale digital Rupiah. After that, it will enter into the second stage, the stage of another transaction to the real sector," stated Perry.

Leaks from Exposure to Digital Rupiah Plans, which are believed to be Indonesia's Future Money

Notes from Bank Indonesia stated that the CBDC project is a prospective solution to realize a faster, more accessible, more transparent, and more inclusive way of transacting between countries.

Currently, the problems are high transaction fees, fragmented, complex data formats, limited operating hours, not to mention the problem of currency conversion, which is not easy, and currency payments and retail development in other countries.

For this project, Perry Warjiyo said that the development of this Digital currency design would be completed in 2024. Bank Indonesia had previously issued and published a Digital Rupiah Consultative Paper for 2023, intended to accommodate input.

The development of the Digital Rupiah at this stage will also be focused on wholesale, and the focus is more on prominent business players. Apart from that, the digitalization of this payment system will also be accelerated.

For now, they will also focus on digitizing payments, first in the local sector. Perry Warjiyo said: "We continue to digitize through standardization of payment system services through QRIS, fast payments, currency transactions, and others,"

Perry also said the acceleration of digitalization of the payment system and deepening of the money market for the effectiveness of Bank Indonesia's policies. Moreover, it was stated that this was one of the strategies to accelerate the digitization of the payment system.

Bank Indonesia should be more Concerned about the Banking Sector and Rupiah’s Value

However, the market also said that the market is waiting for the release of some data and the latest conditions related to the banking sector. The financial market continues to be a concern, especially since the latest news shows the closure of three banks in the United States.

The expert also said that Bank Indonesia should be concerned about this rather than developing a digital rupiah. Market sentiment is coming to global markets, and the Fed continues to show its need for more clarity.

Bank Indonesia is also said to maintain stability and support economic growth. The latest news regarding this is the Rupiah which is moving in the range of IDR 15,359 this Monday. The reason for the decline in the Rupiah exchange rate was the banking sector's health.

"Currently, the market will be waiting for the release of some data, and the latest conditions relating to the health of the banking sector and financial markets, especially after the closure of 3 US banks," said Bank Mandiri money market expert Reny Eka Putri.

The Rupiah had to be sluggish while waiting for the results of the Fed meeting, and market experts considered to be the leading cause. Moreover, because currency trading has not been fully stable, Bank Indonesia prefers to focus on the digital banking sector.