Today's Top 3 News: World Bank Warns Sumatra Floods Could Hit Indonesia's Economy
Reporter
December 17, 2025 | 04:54 pm
TEMPO.CO, Jakarta - Tempo English compiled the top 3 news on Wednesday, December 17, 2025. Here are the highlights: World Bank Warns Sumatra Floods Could Hit Indonesia's Economy; World Bank Forecasts 5 Percent Growth for Indonesia in 2026; and Prabowo Urges Oil Palm Planting in Papua for Biofuel.
The following is the list of the top 3 news on Tempo English today:
1. World Bank Warns Sumatra Floods Could Hit Indonesia's Economy
TEMPO.CO, Jakarta - Flash floods and landslides in several regions of Sumatra in Indonesia have been highlighted by the World Bank. According to the institution, the disasters that occurred since late November 2025 in several areas of Sumatra, including Aceh, North Sumatra, and West Sumatra, have the potential to have a negative impact on Indonesia's economy.
Lead Economist of the World Bank for Indonesia and Timor Leste, David Knight, said that flood disasters are part of the downside risk for the national economic growth towards the end of 2025.
"Related to risks, which are downside risks, natural disasters such as the floods in Sumatra and also in several other locations will have a negative impact on economic activities in Indonesia," said David during the launch of the Indonesia Economic Prospects (IEP) report at the Energy Building, Jakarta, on Tuesday, December 16, 2025, as quoted by Antara.
2. World Bank Forecasts 5 Percent Growth for Indonesia in 2026
TEMPO.CO, Jakarta - The World Bank projects that Indonesia's economic growth is expected to reach 5 percent in 2025–2026, before gradually rising to 5.2 percent in 2027. This forecast was released in the December 2025 edition of the Indonesia Economic Prospects (IEP) report.
"Amid a global situation full of uncertainty, Indonesia's economy remains quite resilient. The GDP growth remains at around 5 percent per year, equivalent to previous years and higher than the average of middle-income countries," said Carolyn Turk, World Bank Director for Indonesia and East Timor, in Jakarta on Tuesday, December 16, 2025, as reported by Antara.
3. Prabowo Urges Oil Palm Planting in Papua for Biofuel
TEMPO.CO, Jakarta - Indonesian President Prabowo Subianto summoned the regents of Papua, Papuan figures, and the Executive Committee for the Acceleration of Special Autonomy Development in Papua to the Presidential Palace in Jakarta on Tuesday, December 16, 2025. During the two-hour meeting, Prabowo discussed various development issues in Papua with six governors and 42 regents.
One of his directives was to encourage the planting of oil palms in Papua to produce alternative oil fuel as a replacement for fossil fuels. "Later, we hope that oil palms will also be planted in Papua to produce biofuels from oil palms," said Prabowo.
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