Province

South Papua

Overview Economy

Papua – South Papua

Situated on Papua Island, South Papua is a newly established province in Indonesia. Its establishment was administered under Law No. 14/2022, signed by President Joko “Jokowi” Widodo on July 25, 2022. Through this law, the province of Papua underwent an administrative division, resulting in the formation of South Papua province.

Encompassing the southernmost portion of Papua, the province shares its land borders with Papua province to the north and the independent nation of Papua New Guinea to the east. To the south, it is bounded by the Arafura Sea, and to the west, by the Aru Sea.

Up to 120,279 square kilometers of landmass covers South Papua, which is also home to 553,910 individuals. Additionally, the province is divided into four districts, namely the Mappi district, Asmat district, Boven Digoel district, and Mappi district, which also serves as the province’s capital city.

In South Papua, Christianity is the dominant religion, according to 2023 data from the Directorate General of Population and Civil Registration Office. It represents 72.57 percent of the population, with Catholicism being the most prevalent Christian denomination at 49.62 percent, followed by Protestantism at 22.95 percent. Other religions, including Islam, were recorded at 27.28 percent, Hinduism at 0.11 percent, and Buddhism at 0.04 percent, making up a smaller portion of the province’s religious landscape.

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Economic Description

Despite being a recent addition to Indonesia's provinces, South Papua's economy is maintaining a steady pace. In 2022, the province’s Gross Regional Domestic Product (GRDP) reached Rp 28.6 trillion, with the construction sector serving as the province’s leading sector with a significant contribution of Rp 6.9 trillion. It is closely followed by the agriculture, forestry, and fisheries sector at Rp 6.1 trillion, and the wholesale and retail trade sector, including cars and motorcycles reparation, at Rp 3.5 trillion.

The construction sector’s leading role in South Papua extends from thriving construction activity across Papua Island. Subsequently, given the province’s recent establishment, the construction of essential infrastructure fuels activity across various sub-sectors, positioning construction as the backbone of South Papua’s ongoing economic development.

Furthermore, the agriculture, forestry, and fisheries sector is the second leading sector in South Papua. Within this sector, the largest sub-sector is farming and livestock, contributing nearly Rp 2.8 trillion. Fisheries closely follow with Rp 2.7 trillion, along with forestry at Rp 605 billion.

Lastly, the wholesale and retail trade sector has emerged as the third leading contributor to South Papua’s economic well-being. This sector experienced a significant growth rate of 8.76 percent in 2023, showcasing its potential to become an even more vital driver of economic activity in the province in the future.

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Latest News

August 15, 2025

Palm oil plantation and processing holding company Tunas Sawa Erma (TSE) Group inaugurated the first biomass gasification power plant (BPGG) and compressed biomethane gas (CBG) facility in the island of Papua. The facility will be operated by its subsidiary, PT Berkat Cipta Abadi.

The renewable energy (renewables) facility is located in Merauke Regency, South Papua Province. TSE Group President Commissioner Robert Seung stated that the project is part of the company's roadmap toward achieving a global net-zero emissions target.

"Through this facility, we are not only managing palm oil industry waste, but transforming it into real energy solutions," Robert said at the inauguration ceremony with "Green Power, Born from Waste" as its theme on Aug. 1, 2025. 

The inauguration was also attended by South Papua Governor Apolo Safanpo and Merauke Regent Yoseph Gebze. The BPGG is designed to process 1,000 cubic meter (m³) of palm oil mill liquid waste (POME) per day. The resulting methane gas is used as an environmentally friendly source of electricity for factory and office operations.

The remaining gas is compressed into CBG, an alternative fuel to diesel, which is projected to reduce diesel consumption by up to 1 million liters per year. With a power production capacity of 2 megawatts (MW), the facility is sufficient to supply the 150-ton-per-day Kernel Crushing Plant (KCP). In addition to improving energy efficiency, this initiative can reduce greenhouse gas emissions by up to 60,708 tons of CO2 per year.

South Papua Governor Apolo Safanpo assessed that the construction of the facility aligns with the national plan for energy and food self-sufficiency.

"This is a strategic initial step and could serve as a model for other regions in Papua," he said.

Going forward, TSE Group plans to develop similar facilities in five other business units. Furthermore, TSE's green expansion also includes the implementation of electric vehicles, the utilization of solar energy, and the use of environmentally friendly fertilizers across all company operations.

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