Project Garuda: Navigating The Architecture Of Digital Rupiah

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Foreword

Project Garuda is an initiative which encompasses the endeavors in exploring the optimal design for Indonesian CBDC, or Rupiah Digital. Rupiah Digital is a contribution brought by Bank Indonesia to the nation in a struggle to safeguard the sovereignty of Rupiah in the digital era.

The project reinforces Bank Indonesia's preceding initiatives in advancing digital transformation of the country, particularly with the mutual objective of accomplishing an end-to-end integration of economy and finance, which has been promoted through the Indonesian Payment System Blueprint 2025 (BSPI 2025) and Blueprint for Money Market Development 2025 (BPPU 2025).


White P​aper

As a first step, Bank Indonesia issued a white paper concerning the development of Rupiah Digital on 30 November 2022. The White Paper elaborated the high-level design for Rupiah Digital under the hood of Project Garuda as well as initiated public communication regarding the development plan of Rupiah Digital.

This White Paper elucidated: (i) Rupiah Digital end-to-end integrated design configuration, (ii) Rupiah Digital design features that would stimulate new business models, (iii) Rupiah Digital technology architecture, as well as (iv) regulatory and policy supports for the implementation of the Rupiah Digital design.

Considering its extensive implications, this national-scale initiative requires synergistic efforts in its formulation and implementation. Similarly, the synergy with the international central banking community and international organizations is essential to ensure the alignment of the Rupiah Digital design with various interoperability initiatives for cross-border transactions.

Access the full white paper click here. 

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Consultative Paper

Bank Indonesia issued the Stage I Consultative Paper titled "Project Garuda: Wholesale Rupiah Digital Cash Ledger" on January 31, 2023, following the release of the Project Garuda White Paper.

The Consultative Paper aims to gather input and feedback from stakeholders (public-private collaboration) on the design, impact, and benefits of Rupiah Digital to ensure it meets current and future needs.

This paper outlines the development design for the Rupiah Digital at the immediate state, focusing on the wholesale Rupiah Digital Cash Ledger. It includes the introduction of technology and basic functions, such as issuance, destruction, and fund transfer. Furthermore, it also discusses the potential impacts of issuing Rupiah Digital on payment systems, financial stability, and monetary stability.

Access the full consultative paper here. 

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Public Consultation Report

We publish this report as a form of Bank Indonesia's transparency in developing the Rupiah Digital design. This report constitutes a summary of the public comments on the Consultati ve Paper Project Garuda: Wholesale Rupiah Digital Cash Ledger received by Bank Indonesia between January 31, 2023, and July 15, 2023, responding to the w-Rupiah Digital immediate state use cases, i.e., issuance, transfer, and redemption.

The Consultative Paper included 35 questions, which were divided into two parts, namely functionality and general considerations, and then further classified into six categories: i) access (participation, data and wallet access); ii) issuance and redemption; iii) funds transfer, gridlock resolution and settlement finality; iv) technical capability and 3i aspects (interconnection, interoperability and integration); v) technology (scalability and resilience); and vi) implications towards the Payment System and Financial and Monetary Systems.

The participation and input of these diverse stakeholders is essential for broadening the perspective in developing the Rupiah Digital design that best meets the needs of the industry and the public.

 Access the Full Report here.​

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Proof of Concept (PoC) Report

Building upon the ongoing initiatives under Project Garuda, Bank Indonesia has successfully completed the Proof of Concept (PoC) for the immediate state of Rupiah Digital exploration, marked by the issuance of the PoC Report titled “Project Garuda: Wholesale Rupiah Digital Cash Ledger" on Desember 13, 2024.  

This PoC is an effort to evaluate the best-fit technology to fulfil the design requirements of Rupiah Digital. The testing was conducted to two potential distributed ledger technology (DLT) platforms to support Rupiah Digital business model, focusing on the issuance, redemption, and transfer processes.  

The issuance of this report reflects Bank Indonesia's commitment be transparent and collaborate with various stakeholders in every phase of Rupiah Digital development. The outcomes of this PoC will serve as a foundation for further exploration of Rupiah Digital, in order to address the challenges of the evolving digital economy and finance in the future.

 Access the full PoC Report here.

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FAQ ​

Rupiah currency in a digital format that can be used in the same way as existing physical currency (banknotes and coins), electronic money (chip and server-based) and card-based payment instruments (debit cards and credit cards). Digital Rupiah can only be issued by Bank Indonesia as the central bank of the Republic of Indonesia. 
Digital rupiah will complement and is not intended to replace existing rupiah currency in circulation and currently used by the public, including banknotes and coins. 

Equivalent to the function of Rupiah as the currency and legal tender of the Republic of Indonesia, the functions of the Digital Rupiah are as follows?

  1. Medium of exchange,
  2. Store of value, and
  3. Unit of account. 

Two types of Digital Rupiah will be issued, namely: (i) Wholesale Digital Rupiah (w-Digital Rupiah), with limited access coverage and only distributed for the settlement of wholesale transactions, such as monetary operations (MO), foreign exchange market transactions and money market transactions, and (ii) Retail Digital Rupiah (r-Digital Rupiah), with open access to the public and distributed for various retail transactions, including payments and transfers, by individuals and businesses (merchants and corporations).​​

No. Digital Rupiah is not considered a crypto asset or stablecoin. Digital Rupiah is a Central Bank Digital Currency (CBDC) and the official currency of the Republic of Indonesia. 
No. Digital Rupiah is issued through the conversion of bank/non-bank balances (giro) held at Bank Indonesia, thus complementing existing currency. Digital Rupiah is a direct claim against the central bank, meaning that the value of Digital Rupiah will not fluctuate against the Rupiah.
  1. Digital Rupiah is issued by Bank Indonesia (central bank), as with existing banknotes and coins, but in a digital format. Meanwhile, rupiah as electronic money (e-money) or card-based payment instruments originates from money recorded or circulated by commercial banks.
  2. Digital Rupiah is a direct claim against Bank Indonesia as the Issuer, while e-money and card-based payment instruments are a claim a​gainst the issuing commercial bank or payment service provider (PSP). 


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At the Bank Indonesia Annual Meeting (PTBI) in 2022, held on 30th November 2022, Bank Indonesia launched Project Garuda, which encompasses various initiatives exploring the architectural options for Digital Rupiah. As a preliminary step of the project, Bank Indonesia published a White Paper containing the high-level design of Digital Rupiah. After publication of the White Paper, Bank Indonesia began a series of iterative efforts, starting with gathering public views concerning a more detailed Digital Rupiah design through publication of a Consultative Paper, followed by technological experimentation (proof of concept, prototyping and piloting/sandbox), and ending with a review of the policy stance. Every stage of Digital Rupiah development is based on this form of iterative development cycle (immediate, intermediate and end-state). 

This incremental and iterative approach provides ample flexibility for stakeholders and the industry to prepare and perform joint trials/piloting prior to full implementation of Digital Rupiah. 



The Proof of Concept for the Rupiah Digital Immediate State Phase was conducted for 14 months, from July 2023 to August 2024.
No. For now, results and its trials are only available to Bank Indonesia and its authorised parties.
No, Rupiah Digital was tested using a DLT network specifically made for the Immediate State Proof of Concept, with limited access (permissioned network)
In the Immediate State Proof of Concept, the design of the Rupiah Digital is tailored to meet the needs of the existing payment system through the central bank, which has multiple roles. Additionally, the PoC tested the distribution of transaction validators among participants other than Bank Indonesia.
No, the two technology solutions tested and explored in the Digital Rupiah Immediate State Proof of Concept do not represent Bank Indonesia’s commitment to reuse these solutions in the subsequent phases of the Rupiah Digital



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