Province

Papua

Overview Economy

Papua – Papua

Papua province emerges as the easternmost province of Indonesia, with its geographical boundaries stretching to the very edge of the archipelago. To the east, the province is surrounded by Papua New Guinea; to the north, the Pacific Ocean; to the west, Cendrawasih Bay; and to the south, the provinces of Central Papua and Highland Papua.

Covering a land area of 319,036 square kilometers, the province is the largest in all of Indonesia. It is home to a population of a little over 1 million people. The province’s administrative hub is located in the city of Jayapura, which also serves as the capital and the sole city in the province. It is divided into eight districts.

Papua showcases a diverse tapestry of tribes, religions, and languages, with 255 ethnic groups, each speaking different local languages. Some of these ethnic groups include the Ansus, Amungme, Asmat, Bauzi, Biak, Dani, Empur, and Hatam people. Beyond these mentioned groups, Papua likely is home to many others, all contributing to the cultural richness of the region.

The religious landscape in Papua is predominantly Christian, with nearly 64.23 percent of the population adhering to this faith. Islam follows behind with 29.85 percent of the population, and Catholicism represents 5.62 percent of the population. Other religions in this province make up less than 1 percent of the population.

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Economic Description

Papua has showcased a growing economy. In 2022, the province recorded a Gross Regional Domestic Product (GRDP) of Rp 172.9 trillion, with the economic landscape primarily driven by three sectors: mining and excavation, construction, and agriculture, forestry, and fisheries.

The mining and excavation sector contributed approximately Rp 74 trillion to the province’s GRDP. As the largest gold-producing area in Indonesia, gold is Papua’s leading commodity in the sector. Additionally, the province boasts the largest oil reserves In Indonesia, producing around 223 million barrels of oil in 2022. With rich, untapped mineral resources in Papua that could benefit local communities through development, opportunities emerge for investors to develop responsible mining projects.

Construction is the second-largest contributor to the province’s GRDP, with around Rp 20.1 trillion generated in 2022. Holding a Construction Expense Index reaching 192.57 in 2022, Papua ranks as the most expensive province for construction in Indonesia. This high index indicates significant market potential for construction in Papua. The province’s infrastructure development efforts aim to create a win-win situation by empowering both the public and private businesses in the region.

Furthermore, the agriculture, forestry, and fisheries sector is the third-largest contributor to Papua's economy, generating Rp 17.1 trillion in 2022. Within this sector, fisheries stand out as a significant economic driver. Notably, Cendrawasih Bay is the largest tuna fishing area in the region, with an annual export potential of 600,000 to 1.1 million tonnes.

Beyond these top three sectors, there are priority investment opportunities in Papua, particularly in the city of Jayapura. These investments focus on the agro-industry and the industrial sectors. In the agro-industry, there is an opportunity to invest in Wamena’s Arabica coffee beans and Cendrawasih coffee powder. Additionally, in the industrial sector, there is potential for investment in an integrated sago starch industry.

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Latest News

August 21, 2025

PT Chery Sales Indonesia (CSI), a subsidiary of Chery Holding Group automobile manufacturer Chery Automobile, is expanding its reach into Eastern Indonesia by opening a dealership in Jayapura Regency, Papua Province. The sales and after-sales service facility is the first in Papua Island for the brand, and the 54th Chery dealership to open in Indonesia.

PT CSI Brand & Marketing Department Head Rifkie Setiawan explained that the expansion was pursued to address the enthusiasm and growing market demand in Jayapura Regency. He highlighted the region's dynamic geography, ranging from urban traffic to challenging hilly terrain.

Rifkie claims that Chery's sport utility vehicle (SUV) product line can meet those needs, adding that the company has received a positive response in Jayapura Regency even before its dealership in the region was officially opened.

"This is our fourth dealership in Eastern Indonesia and the first in Papua. We see enormous market potential in Papua for the SUV segment," he said in a written statement received by Kontan.co.id on Aug. 12, 2025.

Rifkie believes that opening a dealership in Jayapura will expand the choices of cars available for consumers and contribute to regional economic growth. Chery's entry is also in line with the 11.55 percent growth of Papua Province's transportation sector.

"The presence of Chery Jayapura is a realization of our commitment to reach out towards the entire Indonesian automotive market and provide premium SUVs to people across the region," he continued.

The Chery dealership in Jayapura Regency operates under the management of PT Koko Diler Mobil Chery. The sales and after-sales service facility is located at Bucend 2 Entrop Road No. 9, Ardipura Subdistrict, South Jayapura District, Jayapura Regency. With a building area of ​​979 m² on on 1,300 m² of land, the Chery Jayapura dealership is designed to implement the company's global service standards. The facility provides integrated 3S services, namely sales, service, and spare parts.

Chery Jayapura also has full authorization and complete facilities to handle after-sales service for all Chery vehicles. PT CSI provided expert technicians specifically certified for electric vehicles (EVs) to ensure precise and safe handling. Rifkie stated that the inauguration of the Jayapura dealership brings Chery closer to its target of operating 80 dealerships across Indonesia by the end of 2025.

Chery's expansion is supported by the positive momentum it achieved at Gaikindo Indonesia International Auto Show (GIIAS) 2025 held by the Association of Indonesian Automotive Manufacturers (Gaikindo). Chery's participation in the major automotive exhibition resulted in 2,153 car orders, representing a significant increase of about 113 percent year-on-year (yoy).

"That figure confirms the solid trust of Indonesian consumers in the innovation, quality, and excellence of Chery products," Rifkie concluded.

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