He made the statement in response to a question about Chinas central banks decision to cut its rate by 25 basis points to 4.6 percent from 4.85 percent.
"BI must continue to remain alert towards external developments", he said after meeting with the House of Representatives (DPR) Budget Committee.
Martowardojo added that Bank Indonesia must maintain its stance and impose a tight monetary policy because the worlds crude oil prices were continuing to decline, while the economy in developing countries were still on a correction course.
"We must remain prudent and consistent so that the macro-economy remains stable", he said.
Chinas central bank has cut its rate for the fifth time since November 2014, to boost the countrys economic growth, which is slowing down.
Bank Indonesia is still maintaining its rate at 7.5 percent after cutting the rate by 25 basis points in February.
The bank said the decision is in line with efforts to maintain inflation at a targeted range of between 4.0 percent plus/minus 1 percent in 2015 and 2016.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2015
