Jakarta. Bank Indonesia (BI) has successfully completed the first proof of concept (PoC) phase for the digital rupiah, marking a significant milestone in its exploration of a Central Bank Digital Currency (CBDC) under the “Proyek Garuda” initiative.

The initial PoC focused on developing a wholesale cash ledger system, a foundational element for the digital rupiah’s infrastructure. According to BI’s Head of Communications, Ramdan Denny Prakoso, this achievement follows earlier stages that began in 2022, including the publication of a white paper, consultative paper, and public consultation report.

“This phase ensures that the system we are building is efficient, secure, and reliable,” Ramdan said in a press statement on Friday.

The PoC comprehensively tested the readiness of the technology, focusing on three key areas: technical robustness, transaction security, and compatibility with existing financial and payment infrastructure. Distributed Ledger Technology (DLT) was employed to evaluate its potential for supporting the digital rupiah’s business model.

Ramdan said the PoC results exceeded expectations, confirming that DLT-based solutions meet the technical and business demands of a wholesale cash ledger system. 

The initial PoC phase marks a significant milestone in the experimentation of the digital rupiah. The success and insights gained from this PoC will serve as a foundation for strengthening technical aspects of the digital rupiah in the future.

The success of this phase signifies Indonesia’s readiness to modernize its payment systems with a digital currency, which could enhance transaction efficiency, increase financial security, and strengthen interoperability across financial institutions.