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.

Show more

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.

Show more

Latest News

June 13, 2025

PT Indosat Tbk launched the AI ​​Experience Center (AIEC) in Jayapura City, Papua Province as part of the company's commitment to encourage equal distribution of digital transformation and strengthening artificial intelligence (AI) talent in Indonesia, especially in Eastern Indonesia which has had limited access to cutting-edge technology.

AIEC Papua is Indosat's third AI center facility after previous ones in Jakarta and Solo, built through collaboration with global partners such as Huawei and the Wadhwani Foundation. The center provides various examples of AI utilization cases, basic to advanced training, and trials of AI technology use. The wider public, students, and civil servants could take advantage of this facility to improve their digital literacy and skills, create new opportunities, and increase productivity.

Indosat President Director and Chief Executive Officer Vikram Sinha emphasized that the presence of AIEC in Papua is a real step so the benefits AI are not only felt in big cities such as Jakarta, Surabaya, or Medan, but also Jayapura, Papua.

"We want to ensure that Jayapura has an equal opportunity to benefit from AI," said Vikram on May 21, 2025.

Indosat emphasized its investment commitment not only in 5G technology, but also in the integration of AI and 5G to provide a significant impact in the health and education sectors. Vikram highlighted that AI has been proven to bring major changes in the global health and education sectors.

In the field of education, AI was said to have created opportunities for personal learning and more equitable access. Indosat encourages the youth of Papua to take advantage of this technology because AI is now easier to learn and access, and it can even be a source of independent learning for anyone.

AIEC Papua is supported by GPU Merdeka, an AI infrastructure built and managed by local Indonesians for national interest. Indosat also continues to strengthen the national AI ecosystem through the development of Sahabat-AI, an open-source Large Language Model (LLM) for Indonesian and regional languages, in order to strengthen the country's digital sovereignty and technological inclusivity.

“The AI ​​Experience Center is a training center for AI talents, bringing the world’s best practices to Indonesia and introducing the most advanced technology to the wider public,” said Vikram.

He also emphasized Indosat’s commitment to investing in Papua's human resources by providing training with strategic partners such as Huawei and the Wadhwani Foundation.

“We will ensure that we create impact on a large scale. This is a good start for Jayapura. This is my second visit, and I have promised that this year I will come at least twice more,” Vikram concluded.

Read more
May 6, 2025
April 15, 2025
March 24, 2025
March 13, 2025
February 28, 2025
February 16, 2025
January 18, 2025
December 26, 2024
Load more