Indonesian central bank on Thursday keeps its benchmark interest rate unchanged to spur the economic growth from the gloomy global economy as the treat of inflation remain high.

The bank governor board meeting decided to keep the basic rate at 5.75 percent on Thursday.

"The central bank today decided to hold the rate at the position of 5.75 percent," Central Bank Governor darmin Nasution told a press conference at the bank office.

Indonesia failed to increase oil price by one third to 6,000 rupiah (some 0.65 U.S. dollar) on April 1, and would raise it when the breach of the domestic oil price from the global oil price exceeds 15 percent in averages within the past six months, but the plan had boosted expectation on inflation in March.

The government and parliament revised down the inflation target to 6.8 percent this year from the previous target of 5.3 percent.

The National Statistic Bureau recorded annual inflation accelerated at 3.97 percent in March after accelerating at 3.56 percent in February, and on monthly basis the consumer price index rose by 0.07 percent in March from that of 0.05 percent in the previous month as food and accessories prices picked up.

Nasution said that the would keep watching the risks of possible oil price hike that would be conducted by the government.

"The central bank still sees the possible risks of increasing inflation should the government apply its price hike plan. The central bank would take policies to ease the impacts," he said.

Indonesia revised budget deficit from 1.5 percent to 2.23 percent, economic growth from 6.7 to 6.5 percent, exchange rate of 9,000 rupiah per one U.S. dollar and crude oil sales at 930,000 barrels per day.

Analyst from Standard Chartered bank Fauzi Ichsan has said that the condition could lead the central bank keep its basic rate steady at 5.75 percent on its monthly meeting the beginning of this month.

"The central bank may keep interest rate unchanged at its meeting this month, because the inflation has started to increase, " he told Xinhua by phone.

The central bank has kept it basic rate on its meeting on March 8, after cutting it by 75 basis points at the end of last year and 25 basis point at the beginning of this year.

The central bank governor Darmin Nasution has said that the bank would prefer to use its out of interest rate instrument to absorb excess liquidity, including rising banks' reserve and boosting market operation.

Indonesia has struggled to trim huge energy subsidy so that it could spend more on building bridge, roads, railways bridges, seaports and airports to lure more global funds after it regained investment grade status by Fitch's rating agency on Dec. 15 and Moody's Investor Service on Jan. 18.

Indonesian President Susilo Bambang Yudhoyono has aimed to reach an average of annual economic growth by 6.6 percent at the end of his tenure by 2014 through building massive infrastructure which he expect two third of total funds needed at 140 billion U.S. dollars from investors.