Province

South Papua

Overview Economy

Papua – South Papua

Situated on Papua Island, South Papua is a newly established province in Indonesia. Its establishment was administered under Law No. 14/2022, signed by President Joko “Jokowi” Widodo on July 25, 2022. Through this law, the province of Papua underwent an administrative division, resulting in the formation of South Papua province.

Encompassing the southernmost portion of Papua, the province shares its land borders with Papua province to the north and the independent nation of Papua New Guinea to the east. To the south, it is bounded by the Arafura Sea, and to the west, by the Aru Sea.

Up to 120,279 square kilometers of landmass covers South Papua, which is also home to 553,910 individuals. Additionally, the province is divided into four districts, namely the Mappi district, Asmat district, Boven Digoel district, and Mappi district, which also serves as the province’s capital city.

In South Papua, Christianity is the dominant religion, according to 2023 data from the Directorate General of Population and Civil Registration Office. It represents 72.57 percent of the population, with Catholicism being the most prevalent Christian denomination at 49.62 percent, followed by Protestantism at 22.95 percent. Other religions, including Islam, were recorded at 27.28 percent, Hinduism at 0.11 percent, and Buddhism at 0.04 percent, making up a smaller portion of the province’s religious landscape.

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Economic Description

Despite being a recent addition to Indonesia's provinces, South Papua's economy is maintaining a steady pace. In 2022, the province’s Gross Regional Domestic Product (GRDP) reached Rp 28.6 trillion, with the construction sector serving as the province’s leading sector with a significant contribution of Rp 6.9 trillion. It is closely followed by the agriculture, forestry, and fisheries sector at Rp 6.1 trillion, and the wholesale and retail trade sector, including cars and motorcycles reparation, at Rp 3.5 trillion.

The construction sector’s leading role in South Papua extends from thriving construction activity across Papua Island. Subsequently, given the province’s recent establishment, the construction of essential infrastructure fuels activity across various sub-sectors, positioning construction as the backbone of South Papua’s ongoing economic development.

Furthermore, the agriculture, forestry, and fisheries sector is the second leading sector in South Papua. Within this sector, the largest sub-sector is farming and livestock, contributing nearly Rp 2.8 trillion. Fisheries closely follow with Rp 2.7 trillion, along with forestry at Rp 605 billion.

Lastly, the wholesale and retail trade sector has emerged as the third leading contributor to South Papua’s economic well-being. This sector experienced a significant growth rate of 8.76 percent in 2023, showcasing its potential to become an even more vital driver of economic activity in the province in the future.

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Latest News

April 10, 2025

Muhammad Assegaff, Merauke Branch Head of PT. Pelayaran Nasional Indonesia-PELNI (Persero), requested during an audience of transportation state-owned enterprises (SOEs) to South Papua Governor Apolo Safanpo on Apr. 9, 2025, for the support of the South Papua Provincial Government and the Merauke Regency Government to carry out dredging the entry point to the Maro River estuary so that it does not inflict operational delays caused by having to wait for high tide.

"This inflow access has a significant impact on National Strategic Projects (PSNs) because large ships cannot enter due to shallow [waters]. That's why PELNI ships always wait for high tide to enter [the Port of Merauke]. Since our ships always [need to] stay here (the waters approaching Maro River estuary), the port time - the time needed for ships to load and unload at a port before sailing again - is too long," said M. Assegaff.

Therefore, he said that dredging must be carried out in the entry point towards the Maro River estuary to facilitate the flow of both passenger and cargo ships in and out of the Port of Merauke.

"This [project] is necessary for facilitating all naval transportation access activities to support development in South Papua, especially PSNs. This condition [of having to wait for high tide] is quite inhibiting to [PT. PELNI's] activities given not all types of large ships can enter [the Maro River estuary during low tide]," M. Assegaff noted.

"In line with PT PELNI's vision, namely 'To Become a Superior and Globally Competitive Shipping Company in Support of Connectivity and Growth of the Indonesian Maritime Logistics Ecosystem,' we are committed to supporting PSNs in South Papua with our limited facilities. Therefore, we hope for support from regional governments to accelerate [the construction of] facilities and infrastructure relevant to the operation of our ships when visiting the Port of Merauke," he added.

In addition to dredging, three other important points were also conveyed to Governor Apolo Safanpo:

  1. Improvement of land access between regions, especially the Merauke-Boven Digoel route so that the ongoing synergy between SOEs operating on the land route can continue to run smoothly in supplying food and the output of government projects to the port and vice versa;
  2. PT. PELNI hopes for the presence of the Sea Toll fleet to contribute towards South Papua's development. Currently, PELNI is planning for canvassing with PT. BULOG since the harvest time is approaching;
  3. He hopes that the Merauke Regency Government can help the South Papua Land Transportation Organization (Organda) in supporting synergy between SOEs, namely Perum DAMRI and PT PELNI Merauke Branch, to facilitate the transportation of passengers arriving at the Port of Merauke and then to areas in and out of Merauke District, Merauke Regency and its surrounding locations.

In response, Apolo gave his appreciation to the input and suggestions conveyed in the meeting, which will then be studied and followed up on.

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