Province

Central Papua

Overview Economy

Papua – Central Papua

Central Papua, a province located in eastern Indonesia, is a new province that was split from Papua province on June 30, 2022, based on Law No. 15/2022 and Law No. 16/2022. The province is bordered by the districts of Waropen, Mamberamo Raya, and Cendrawasih Bay to the north. To the east, it is bordered by Lanny Jaya, Nduka, Tolikara, and Asmat districts; to the south lies the Arafuru Sea; and to the west are Kaimana district and Wondama Bay.

Central Papua Province encompasses a land area of 66,129 square kilometers, with the Nabire regency serving as the province’s central hub, acting as both the capital city and the administrative center. The province has a population of 1.3 million people.

The population of this province reflects a diverse religious landscape. Christians make up the largest share at 68.59 percent, followed by Catholics at 19.01 percent. Islam is practiced by 12.26 percent of the population, while Hindus and Buddhists form a very small minority, accounting for 0.07 percent and 0.03 percent, respectively. The remaining 0.04 percent adhere to other faiths.

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Economic Description

Despite its recent establishment as a province, Central Papua boasts a promising economic outlook. In 2023, the province achieved a Gross Domestic Regional Product (GRDP) of Rp 101.6 trillion, with the mining and quarrying sector emerging as the primary driver of the region’s economic activity with a GRDP of Rp 78.3 trillion. This sector's dominance highlights the region's rich natural resources and their importance in driving economic growth.

The creation of the new autonomous regions of Central Papua, as well as South Papua, and Highland Papua, has led to a change in how local people make a living. As Central Papua was once part of Papua province, their commodities are very similar. Just like Papua province, Central Papua is now relying more on fishing and maritime activities, having previously mainly relied on gold mining. This is evidenced by the agriculture, forestry, and fisheries sector closely following the mining sector, making a notable contribution of Rp 6.16 trillion.

Lastly, the construction sector contributes around Rp 5.2 trillion to Central Papua’s GRDP. Due to its recent establishment, there is significant market potential for construction in this province. Furthermore, infrastructure development efforts on the island of Papua have been geared towards benefiting both the general population and commercial enterprises. Consequently, it has become increasingly crucial to continually enhance the province’s infrastructure to support the overall infrastructure development of the island.

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Latest News

May 21, 2025

Mining sector activities in Central Papua Province declining by 32.82 percent in the first quarter (Q1) of 2025 led to the province's economy contracting by 25.53 percent year-on-year (yoy) according to Statistics Indonesia (BPS) data. In contrast, the Central Papua economy surged 28.27 percent yoy in Q1 2024. The province also has the worst impact on the Maluku and Papua region's economic performance, contributing 8.19 percent to overall economic contraction based on BPS data.

The fire that occurred at PT Smelting at the Java Integrated Industrial and Ports Estate in Gresik Regency, East Java Province, which made PT Freeport Indonesia (PTFI) unable to export copper concentrate from earlier in the year to mid-March 2025, impacted Central Papua's mining sector. The contraction in coal and lignite mining by 0.91 percent due to the decline in global market demand also contributed.

PTFI President Director Tony Wenas previously explained that that only 40 percent of the total copper concentrate produced in its Central Papua mine could be processed in mid-February due to the fire to PT Smelting's facility in JIIPE. The remaining stockpile, reaching around 1.5 million tons, could not be processed.

"The value [to state revenue from PTFI's exports] at current prices has decreased by US$4 billion or Rp65 trillion," said Tony in a hearing with House of Representatives Commission XII in Jakarta Special Capital Region (DKI) on Feb. 19, 2025.

The PTFI export value to government revenue according to Wenas' presentation include US$.17 billion (about Rp28 trillion) of dividends, US$ 1.6 billion (about Rp 26 trillion) of taxes, US$ 0.4 billion (around Rp 6.5 trillion) of export duties, and US$300 billion (Rp4.5 trillion) of mining royalties. In addition, Wenas claimed that the unprocessed and unexportable concentrates also reduced regional income by Rp5.6 trillion in 2025.

Meanwhile, BPS noted that the contraction in ore and metal mining also influenced Central Papua's mining sector to be the only one with negative performance in Q1 2025, contracting by 1.23 percent. In comparison, the sector rose by 9.23 percent in Q1 2024. Aside from mining, business sectors in the province still recorded positive growth for Q1 2025.

"Metal ore mining contracted 11.83 percent due to major maintenance planned at the copper and gold mines in Central Papua," said BPS Head Amalia Adininggar Widyasanti in a press conference on May 6, 2025.

The mining and quarrying sector contributed to 73 percent of the Central Papua economy, followed by the construction sector with 6.5 percent, the trade sector with 4.57 percent, the agriculture, forestry, and fisheries sector with 4.45 percent, the public administration sector with 3.32 percent, and lastly the other remaining sectors with a combined 7.76 percent based on BPS data.

 

 

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