Indonesian central bank keeps its benchmark interest rate on hold at 6 percent on Thursday to maintain stability of rupiah amid concerns of higher inflation pressure, Governor of the central bank Darmin Nasution said.

Indonesia's inflation this year was forecast to raise faster at 3.5 percent to 5.5 percent, the governor told a press conference at the central bank. Despite the weakening global demand of commodity that eases imported inflation pressure, the government policy of removing fuel subsidy and soaring global oil prices may further raise the pressure.

"The rate level (6 percent) is considered in line with the target of inflation in the future, the effort to maintain the financial stability and it is still conducive in supporting the domestic economy amid the uncertainty of the global economy," he said.

The government's plan to ban private cars from consuming subsidized fuel on April 1 was expected to push up inflation by 0. 7 percent to 0.94 percent this year, Nasution said. The move aims at reducing amounting energy subsidy in this net-oil import country. The inflation reached 3.79 percent last year, the Statistic Bureau announced earlier this month.

Indonesia's rupiah had weakened by more than 7 percent against the U.S. dollar since the central bank cut its basic rate by 25 basis points in October and 50 basis points in November to 6.00 percent to spur economic growth amid the weakening global economy.

Rupiah weakened from 9,079 against one dollar on Jan.2 to 9,164 against one dollar on Jan. 12, according to the data from the central bank.

Nasution said that the bank forecast that the country's economy to expand by 6.3 percent to 6.7 percent in 2012 and 6.4 percent to 6.8 percent in 2013.

The governor said that the bank forecast the economy to expand by 6.5 percent at the fourth quarter and annual growth of last year was estimated at 6.5 percent. "The Central Bank Governor Council will keep monitoring the risk of global economic uncertainty," said Nasution.

The growth this year was expected to be supported by growing investment and exportsas well as huge demand of this populous country with a population of some 238 million.

Indonesia expected 290 trillion rupiah (some 31.36 billion U.S. dollar) investment in 2012 as Fitch's rating agency raised the country's sovereign debt rating from BB+ to BBB-, meaning investment grade and forecast another leading international rating agencies whether Standard and Poor or Moody's rating agencies was going to follow the Fitch's move at the first half of this year, Chairman of the country's Investment Coordinating Board (BKPM) Gita Wirjawan said on Jan. 10.

Indonesia's global bond sales on Jan.9 was oversubscribed by 2. 06 times to 3.6 billion U.S. dollar (the government raised 1.75 billion dollar), indicating that the investors confidence is rising.

In 2011, the chairman said that the board forecast the country' s foreign and domestic investment was going to reach about 250 trillion rupiah (some 27.569 billion dollars), higher than the initial target of 240 trillion rupiah (about 26.467 billion dollars).

The government aimed to achieve a total investment of 400 trillion rupiah (about 44.111 billion dollars) to 500 trillion rupiah (about 55.137 billion dollars) by 2014, Wirjawan said.

Deputy Trade Minister Bayu Krisnamurthi said on Dec. 29 that the ministry predicted exports would raise to 208 billion dollar in 2011 and 230 billion dollar in 2012.

Analysts have said that the global economic slowdown would not significantly impact Indonesia's exports as most of them comprised basic needs, such as natural resources-based products and plantation crops.

Indonesia's exports are account of over 32 percent of the GDP, making the country less vulnerable on the weakening of global commodity demand.