REPUBLIKA.CO.ID, JAKARTA -- Bank Indonesia (BI) said the impact of external factors remain determinant on Indonesian economic development in 2015.

Governor of BI Agus Martowardojo said here on Friday that one of the external factors was normalization of the policy of the US Central Bank.

"How the Fed would handle normalization is important. Another major factor is the Chinese economic condition," Agus said after President Susilo Bambang Yudhoyono delivered his state of the nation address at a plenary session of the House of Representative.

Agus predicted that the global economic recovery will continue to be in the process until 2015.

He said the improvement of the global economic condition is attributable mainly to advanced countries with their accommodating monetary policy and relaxation of fiscal pressure.

The recovery of the US economy is gaining speed as reflected by the upward revision of of the country's Gross Domestic Product (GDP) in the second quarter of 2014 to follow the growing investment, consumption and external sector.

Meanwhile, developing countries' economic growth is expected to be limited resulting in continued fall of commodity prices.

Chinese economic growth in the second quarter of 2014 grew driven by stimulus.

Agus said Indonesia's inflation has remained under control within the target of the central bank.

The trend of inflation is even declining recorded at 6.7 percent year-on-year in the second quarter down from 7.32 percent yoy in the previous quarter. In July 2014, the country's inflation was only 0.93 percent month to month to month or 4.53 percent yoy.

The current account deficit also declined to US$9.1 billion in the second quarter or 4.27 percent of the GDP from US$10.1 billion a year earlier or 4.47 percent of the GDP.

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