Bank Indonesia has fixed its standard interest rate at 6.75% as the bank has been quite alert of the inflation.

The Central Bank stated that the rate will remain stable so that the economy does not face the problems of the uncertainty that has bothered the global economy.

According to the Bank Indonesia, "This decision is taken by considering the need to guard economic stability amid rising uncertainties in the global financial system triggered by the U. S. and Europe debt problems".

Bank Indonesia spokesman Difi Johansyah stated that the Central bank will continue observing the influence of the downgraded global economy on the future of the country's economy. The bank will fortify the management of the policy with the government.

The inflation rate has grown up from July's 4.61% to 4.79% in August. Bank Indonesia is of the view that the increase in rate will result in more inflow of overseas money and so it has decided to keep the rate stable. The bank had acted last time in February and had increased the policy rate by 25 basis points.

Analysts are of the view that the economic instability has forced the central bank to move with caution. The stock market of Indonesia has not been influenced much by the global market instability.