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

March 27, 2025

PT Freeport Indonesia (PTFI) informed that the development of the Kucing Liar underground mining project within Grasberg mine in Mimika Regency, Central Papua Province requires capital expenditure (capex) of US$500 million (about Rp8.2 trillion) per year. PTFI President Director Tony Wenas said that the estimated capex is needed for the next 7-8 years, adding that the Kucing Liar mine would be PTFI's fourth in the Grasberg area.

"The Kucing Liar [mine] will replace the Deep Mill Level Zone (DMLZ) mine so that our ore production process can be stable in the future, and expected to be around 240,000 tons of ore per day," said Tony in a House of Representatives Commission VI hearing on Mar. 13, 2025.

The switch to the Kucing Liar mine is because ore production from the DMLZ mine continues to decline. Currently, production reaches 70,000 tons of ore per day. In addition, PTFI also operates the Grasberg Block Cave mine, which produces 140,000 tons of ore per day, and the Big Gossan mine, which produces 7,000 tons of ore per day with the highest grade, in the Grasberg mining area.

To maintain production levels, Tony is targeting for the Kucing Liar mine to start production in 2027. The potential reserves of the mine are 7 billion pounds of copper and 7 million ounces of gold until 2041. The development of Kucing Liar is an effort made after PTFI obtained an extension of its special mining business permit (IUPK) beyond 2041, which was deemed necessary to extend the life of this project.

Meanwhile, the pre-production development phase of Kucing Liar has begun in 2022 and is expected to continue for a period of approximately 10 years. The mine is estimated to be able to produce approximately 90,000 metric tons of ore per day when fully operational, and it is projected to be able to produce 560 million pounds of copper and 520,000 ounces of gold. Hence, the Kucing Liar Mine is expected to provide PTFI with sustainable benefits in the long term and on a large scale.

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