Province

Highland Papua

Overview Economy

Papua – Highland Papua

Highland Papua is one of Indonesia’s most recent provinces, formed on June 30, 2022, under Law No. 16/2022, resulting from the partition of Papua province. Situated in the eastern section of the Jayawijaya Mountains, the country’s tallest mountain range, the province is bordered by Mamberamo Raya, Sarmi, Jayapura, and Keerom regencies to the north and Papua New Guinea to the east. To the south, it is bordered by Boven Digoel and Asmat regencies, while to the west, it shares borders with Puncak Jaya, Puncak, and Mimika regencies.

Boasting a land area of 108,476 square kilometers with a population of 1.4 million people, Highland Papua’s provincial capital is Wamena City, with its administrative hub located within Jayawijaya regency. The province comprises eight regencies: Jayawijaya, Lanny Jaya, Central Mamberamo, Nduga, Pegunungan Bintang, Tolikara, Yalimo, and Yahukimo.

Out of its population, followers of various faiths are represented, with the majority identifying as Christians (90.29 percent), followed by Catholics (7.61 percent), Muslims (1.92 percent), followers of indigenous beliefs (0.15 percent), and followers of other religions (0.03 percent).

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Economic

In 2023, Highland Papua's Gross Regional Domestic Product (GRDP) stood at Rp 13.3 trillion, with no dominant sector emerging due to its status as a nascent province. In the previous year, the province’s economic growth was noted at 3.05 percent.

Amidst this economic landscape, Highland Papua's commodities play a pivotal role in shaping its emerging market dynamics. Coffee from Wamena serves as the flagship commodity of Highland Papua, complemented by a diverse range of agricultural products including sweet potato, red fruit, onion, agarwood, rubber, pineapple, and orange.

Particularly in the province’s regency of Jayawijaya, the potential for coffee cultivation is notably high, with coffee being their primary commodity. Around 120 tonnes of coffee are produced in this region. However, despite this high production, several districts within Highland Papua are facing grievances from coffee farmers regarding their inability to enhance the quality of their Arabica coffee yields.

Additionally, since the province is quite new, the Highland Papua provincial government is actively fostering the creative economy of Indigenous Papuans (OAP) by utilizing special autonomy funds. This strategic initiative aims to empower local economic actors, enabling them to compete effectively alongside other business entities. Through sustained support and investment, Highland Papua seeks to nurture indigenous entrepreneurship and bolster economic diversity, laying a solid foundation for sustainable development and inclusive growth in the province.

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Latest News

January 24, 2025

PT Bank Rakyat Indonesia (Persero) Tbk or BRI is involved in the syndicated financing for the Mamberamo-Elelim segment of the Trans Papua Road project's Jayapura-Wamena Section in Highland Papua Province. BRI Wholesale & Institution Business Director Agus Noorsanto said that BRI's involvement in the project is real evidence of the company's contribution in supporting the development of national strategic infrastructure.

"The high interest of financial institutions in financing the project is reflected in the oversubscription rate of 1.27 times, which shows the have great trust in the Trans Papua government-business cooperation scheme (KPBU) project's prospects," said Agus in Jakarta on Jan. 8, 2025.

The syndicated financing also involves four other financial institutions, namely PT Sarana Multi Infrastruktur (Persero) or SMI, PT Bank Negara Indonesia (Persero) Tbk or BNI, PT Bank Syariah Indonesia Tbk or BSI, and Bank Pembangunan Daerah Papua (Bank Papua). The total syndicated financing value reached Rp2.6 trillion, consisting of a conventional financing scheme worth Rp2.36 trillion and a sharia financing scheme worth Rp300 billion.

PT Hutama Mambelim Trans Papua (PT HMTP) has officially signed a syndicated financing agreement for the Trans Papua KPBU project. BRI and SMI act as coordinating banks for the agreement, while BNI acts as the joint mandate lead arrangers and bookrunners (JMLAB).

As one of the coordinating banks, Agus said that BRI is committed to continuing to encourage synergy between the KPBU-implementing business entity (BUP), financial institutions, PT Penjaminan Infrastruktur Indonesia (PII), and the government.

"The collaboration is expected to be a strong foundation to support the success of other strategic projects through the KPBU scheme in the future," he said.

The Trans Papua Road KPBU project has a total investment value of Rp3.3 trillion, with a concession period of 15 years covering two years of construction and 13 years of service. The 50.14 kilometer (km) road is intended to be the main route for logistics transportation connecting Jayapura City, Papua Province and Jayawijaya Regency, Highland Papua.

PT HMTP, which was formed through a consortium between PT Hutama Karya (Persero) and PT Hutama Karya Infrastruktur, acts as the BUP for the KPBU. The project uses the availability payment (AP) scheme, where the government provides periodic payments based on the agreed quality of service. The scheme is also supported by a payment guarantee from PT PII.

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