Beyond cash: How Digital Rupiah shapes Indonesia's economy

Jakarta (ANTARA) - The way people conduct everyday transactions in Indonesia is undergoing a major shift.

Physical banknotes and coins are no longer the sole means of commerce as daily economic activities move into the digital sphere.

Payments at corner shops, traditional wet markets, public transport hubs, e-commerce platforms, and cross-border channels are steadily moving toward faster, more integrated digital systems.

Amid this rapid shift, the core question for the national economy is no longer whether digital transactions will become part of daily life, but how effectively Indonesia builds a safe, inclusive rupiah-based ecosystem capable of supporting its long-term goals.

The development of the Digital Rupiah by Bank Indonesia (BI) marks a key milestone in this process.

During a hearing with House Commission XI on September 28, 2026, the BI Governor announced that the central bank had secured a halal fatwa (religious ruling) from the National Sharia Council for its digital currency and stablecoin framework.

Concurrently, experimental testing for cross-border Digital Rupiah transactions has begun.

While obtaining the religious ruling is significant for public confidence, financial authorities stress that the fatwa is just one part of a larger ecosystem.

True readiness requires clear regulations, strong technology, data protection, public literacy, system interoperability, and consumer protection aligned with societal needs.

Thus, moving toward the Digital Rupiah is not merely a technical step to replace cash with digital bits. It is about building an infrastructure of trust to keep the national currency as the core monetary anchor amidst fintech evolution.

Digital foundation

Indonesia approaches this transition from a position of strength.

The public has rapidly adopted digital payment channels.

Central bank data shows that as of June 2026, Quick Response Code Indonesian Standard (QRIS) users reached 65.77 million nationwide across 44.86 million merchants, of which 96.68 percent were micro, small, and medium enterprises (MSMEs).

In the first half of 2026, QRIS recorded 12.55 billion transactions valued at Rp1.12 quadrillion (approximately US$62.92 billion), up 93.92 percent year-on-year (yoy).

This growth confirms that payment digitalization has spread far beyond major cities into small kiosks (warung), food stalls, and creative micro-businesses.

This momentum continued into the third quarter. In August 2026 alone, total digital payment volumes hit 6.11 billion transactions, a 40.36 percent jump yoy, with QRIS expanding 67.22 percent.

During the same period, the BI-FAST retail payment system processed 549 million transactions worth Rp1,346 trillion (US$75.62 billion).

These figures demonstrate that Indonesia is not starting its Central Bank Digital Currency (CBDC) journey from scratch.

The payment system has already modernized through QRIS, BI-FAST, and mobile banking.

The main challenge now is connecting these distinct channels into a unified system.

To achieve this, the regulatory standing of the Digital Rupiah must be clear.

As a CBDC, the Digital Rupiah represents a direct sovereign liability of Bank Indonesia.

It is designed to complement physical cash, not replace it.

This distinguishes it from volatile crypto assets and private stablecoins that carry entirely different risk profiles, issuers, and regulatory setups.

Consumers must understand that non-sovereign digital tokens do not carry the risk-free status of central bank money.

This strategic focus aligns with global trends.

A survey by the Bank for International Settlements (BIS) of 93 central banks found that 91 percent were exploring retail or wholesale CBDCs in 2024.

More than a third are accelerating work to counter the rise of private stablecoins.

However, global experience shows that advanced technology alone does not ensure public adoption.

Issuing a digital currency is only the start; driving everyday use requires real, practical benefits.

The success of QRIS proved that public adoption grows when technology offers speed, simplicity, low fees, and wide merchant acceptance.

That same user-focused approach must guide the Digital Rupiah.

Building trust

Public trust remains the bedrock of success.

Users need certainty that economic value is preserved, transactions settle safely, privacy is shielded, and clear dispute mechanisms exist.

In Indonesia, Sharia compliance is vital to building that confidence.

Fatwas issued by the National Sharia Council of the Indonesian Ulema Council (DSN-MUI) give millions of citizens assurance that digital tools align with Islamic principles.

Beyond religious compliance, trust requires cybersecurity, strict data privacy laws, seamless interoperability across commercial banks, and clear governance.

These safeguards grow even more critical as transactions expand internationally.

Cross-border testing of the Digital Rupiah creates opportunities to boost trade, tourism, and worker remittances.

At the same time, central banks must guard monetary sovereignty.

BIS notes that 98 percent of global stablecoins are pegged to the US dollar, which could weaken local currency functions in developing nations if left unchecked.

Indonesia's goal is to embrace technology without eroding the rupiah's status as legal tender.

The Digital Rupiah is a strategic effort to keep the national currency relevant as commerce digitizes.

The real economy stands to gain directly.

Integrated payment networks reduce friction, lower costs, widen market access, and simplify accounting.

For MSMEs, a verified digital transaction trail creates documented financial histories, making it easier to access formal bank credit.

The success of the Digital Rupiah ecosystem cannot be measured solely by wallet downloads or transaction counts.

Key tests include whether transaction costs drop, market access expands for small producers, cross-border payments become easier, and consumer data remains secure.

These efforts support national goals for 2027, which target 6 percent economic growth, reducing poverty to 6–6.5 percent, lowering unemployment to 4.30–4.87 percent, and creating up to 3.49 million jobs.

Payment digitalization must not function as an isolated tech project. It must link directly to national policies on productivity, financial inclusion, MSME empowerment, and regional trade connectivity.

The readiness of Indonesia's digital transaction ecosystem rests on a matrix of technology, clear laws, robust infrastructure, public literacy, consumer safety, and Sharia compliance. With these foundations in place, Indonesia is well positioned to ensure the rupiah remains a trusted, efficient medium of exchange in the digital age.

*) Dr. M. Lucky Akbar, civil servant at the Finance Ministry and public policy practitioner-lecturer.