REPUBLIKA.CO.ID, JAKARTA - The new installed Governor of Bank Indonesia (BI), Agus Martowardojo, committed to supress inflation by strengthened the monetary policy framework. 

"I will work to coordinate my colleagues in BI to learn global economic conditions and strengthen the monetary policy framework. We will keep convincing the important of the launch of monetary policy," Martowardojo said after the inauguration ceremony in Jakarta. 

The former minister of finance added he would also oversee the autority transfer of bank supervision from BI to Financial Services Authority (OJK).

BI has targeted year-on-year inflation at 4.5 plus or minus 1 percent this year. BI also will maintain the interest rate (BI rate) at 5.75 percent for 16 consecutive months.

Chairman of the National Commercial Banks Association, Sigit Pramono said the new governor must be able to slightly rise BI rate as the inflation is expected to increase. "BI rate remains unchanged untill now. BI rate must slightly rise if it was a component of inflation expectations

Pramono's statement is related to an assumption that inflation is estimated to increase by 7.2 percent in 2013 due to fuel price subsidy increase. He added, although the rise of subsidized fuel price was not enforced, in fact, inflation hikes due to the global crisis.

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