BI advances digital Rupiah initiative with completion of proof of concept | INSIDER – Indonesia Business Post
Julian Isaac
The Indonesian Central Bank (BI) has reached a significant milestone in its digital rupiah initiative, known as Garuda Project, with the successful completion of its proof of concept (PoC) for the first phase.
This achievement marks a critical step in BI’s efforts to explore the development of a central bank digital currency (CBDC) in Indonesia.
“This new phase builds on three prior stages launched in 2022: the white paper, consultative paper, and public consultation report,” BI Spokesman Ramdan Denny Prakoso said on Friday, December 13, 2024.
The PoC process tested the technological readiness required to support the digital rupiah’s business model. The evaluation addressed three key aspects:
- Critical Technical Features: Ensuring robust performance and scalability;
- Transaction Security: Safeguarding the system from potential threats;
- Interoperability: Aligning the system with existing payment infrastructures and financial systems.
“These aspects were deeply analyzed during the PoC design phase to ensure the system delivers efficient, secure, and reliable services,” Denny said.
The PoC also utilized distributed ledger technology (DLT), a system for recording transactions in a decentralized manner.
The technology employs a consensus method to synchronize data across all participants, ensuring transparency and accuracy.
Key findings and achievements
The PoC demonstrated that DLT-based solutions could meet both the business and technical requirements for the wholesale digital rupiah cash ledger.
All test scenarios were successfully executed, validating the system’s potential.
“This proves that DLT technology can effectively fulfill the business and technical needs of the wholesale digital rupiah model,” Denny said.
Julian Isaac
SUBSCRIBE NOW
We will provide you with an invoice for your reimbursable expenses.
Free
New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.
Premium
$550 USD/Year
or
$45 USD/Month
Cancelation: you can cancel your subscription at any time, by sending us an email
Add keywords to your market watch and receive notification:
Schedule a free consultation with us:
We’ll contact you for confirmation.
FURTHER READING
The Indonesian Democratic Party of Struggle (PDI-P) has issued decrees that formalize dismissal of popular figures Joko “Jokowi” Widodo, Gibran Rakabuming Raka, and Bobby Nasution, along with 24 other cadres from the party’s membership after months of verbal noise in public.
Governor of the Indonesian Central Bank, Perry Warjiyo, highlights two main reasons that make Foreign Investment in Indonesia lagging behind fellow ASEAN member Vietnam.
Mining giant Vale is conducting job cuts across its global operations in response to the ongoing decline in nickel prices. While the company has not disclosed the number of employees affected in Sudbury, Ontario, it confirmed the layoffs will primarily target “non-operating roles.”
PT Bangun Kosambi Sukses, a subsidiary of PT Pantai Indah Kapuk Dua (PANI), is set to go public with its initial public offering (IPO) on the Indonesia Stock Exchange (IDX). The property and real estate company plans to offer 566.89 million shares, equivalent to 10 percent of its paid-up and issued capital post-IPO, under the company code CBDK.
Minister of National Development Planning/Head of National Development Planning Board (Bappenas), Rachmat Pambudy, has revealed alarming levels of financial leakage in Indonesia, spanning all layers and sectors of governance.
A recent study by the Foundation for International Human Rights Reporting Standards (FIHRRST), supported by Moores Rowland Indonesia (MRI) and the Belgian Embassy, highlights a decline in foreign investor interest in Indonesian companies, which is attributed to negative perceptions of ethical standards in local businesses.
