ABSTRACT: Bank Indonesia’s white paper on the digital rupiah projects Indonesia’s consideration of adopting a central bank digital currency (CBDC), following the likes of The Bahamas and Nigeria through the full implementation of their own CBDC systems and a major economy such as China launching their pilot CBDC. This study aims to create a framework to align with determinants of digital rupiah implementation that is relevant for Indonesia’s current payment ecosystem. Through a comprehensive literature review which considers factors of global CBDC adoption along with existing studies of similar digital payment systems in Indonesia, the framework identifies financial inclusion, cybersecurity, technological infrastructure, regulatory quality, and system coexistence as factors to be observed towards the digital rupiah’s advancement in their research stages. This study thus provides Bank Indonesia with considerations on how to approach their CBDC design within an Indonesia context and provides opportunities for further research on CBDC in general.

 KEYWORDS – Central Bank Digital Currency (CBDC), Bank Indonesia, Framework, Literature Review, Digital Payment Systems