Rupiah Stablecoin Seen as Key to Reducing $7.5 Billion Remittance Costs
Key Takeaways
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BALI, Investortrust.id — The potential use of stablecoins, digital assets pegged to real currencies, has drawn growing attention in Indonesia as policymakers and industry leaders see them as a solution to reduce remittance costs for migrant workers and strengthen financial sovereignty.
Bank Indonesia reported that migrant worker remittances in 2024 reached more than Rp120 trillion ($7.5 billion). With such a large flow, industry executives argue that blockchain-based transactions could cut transfer fees significantly compared with conventional channels.
A number of local crypto players are preparing projects for a Rupiah-denominated stablecoin, aiming to reduce dependence on U.S. dollar-backed tokens such as Tether (USDT) and USD Coin (USDC), which still dominate global transactions.
Regulators Signal Openness
Chairman of the House of Representatives’ Commission XI Mukhamad Misbakhun said the initiative deserved support. “We support it, because the objective is good,” he told participants at the CFX Crypto Conference in Bali on Thursday, Aug. 21, 2025.
Otoritas Jasa Keuangan (OJK) Chairman Mahendra Siregar added that the financial services authority is studying the proposal through its regulatory sandbox. “We are still assessing, in the process of regulatory sandbox, to see possible projects, products, or activities that are based in Indonesia,” he said.
Industry Eyes Big Savings
Shareholder of PT Indokripto Koin Semesta Tbk (COIN) Andrew Hidayat argued that remittances represent one of the clearest use cases for crypto in Indonesia. With millions of workers abroad, he said the demand for cheaper, faster money transfers is massive.
“Remittances can be an excellent aspiration because the costs are much lower. Studies show remittance fees could be reduced by Rp2–3 trillion per year. If that amount is returned to our workers, they will send more money home,” Andrew said.
Currently, traditional remittance channels remain costly because of multiple intermediaries. Blockchain-based transactions, he noted, can streamline the process while broadening financial inclusion in rural areas.
COIN President Director Ade Wahyu, however, cautioned that clear rules were essential. “We must ensure security, consumer protection, and anti-money-laundering measures. Otherwise, this can create new risks,” he said, adding that Indonesia could learn from Thailand, Vietnam, and the United States, which have experimented with similar approaches.
Expanding Digital Finance Ecosystem
Reku Co-Founder and Chief Compliance Officer Robby Bun said a Rupiah stablecoin backed and approved by Bank Indonesia would have far greater utility. “Stablecoin can be used as a main payment instrument, not just speculative assets,” said Robby, who also chairs the Indonesian Blockchain Association.
Pintu Chief Marketing Officer Timothius Martin agreed that remittances were the most relevant sector. “Remittance flows are very large, both inflow and outflow. Reducing costs would have significant impact for migrant workers and their families,” he said.
He estimated that global remittance fees average 5%–7% of transaction value. With Indonesian remittance flows of $10–15 billion annually, the efficiency gains from a stablecoin could be substantial.
Tokocrypto CMO Wan Iqbal lamented that a Rupiah stablecoin had not been introduced earlier. “I wish stablecoins were already available in 2016. This is not about replacing Rupiah but expanding its role in the digital era,” he said.
Indodax CEO William Sutanto warned that delaying development could undermine Indonesia’s financial sovereignty. “USDT and USDC together have market capitalizations of around $230 billion, but none are based on Rupiah. If we do not act, we risk falling behind Thailand, Malaysia, or Vietnam,” he said.
Triv Founder and CEO Gabriel Rey added that adoption of stablecoins like USDT has already accelerated among businesses worldwide, particularly in trade and remittances. He described the trend as part of an ongoing digital finance revolution.
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