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

November 18, 2025

South Papua Governor Apolo Safanpo attended a meeting with the Ambassador of the People's Republic of China to Indonesia Wang Lutong at the Chinese Embassy in Jakarta on Oct. 23, 2025, to discuss investment cooperation and human resource development. The meeting discussed opportunities for cooperation between the South Papua Provincial Government and the Chinese Government in the areas of investment and human resource development.

During the meeting, the Chinese Government expressed its willingness to invest in the fisheries sector of South Papua and establish a vocational training center to improve the skills of the local workforce, particularly in the marine and fisheries sector. Apolo explained that this collaboration could create new business opportunities, strengthen natural resource-based industrial sectors, and improve the welfare of the people in the new autonomous region.

"This collaboration is a strategic step for the economic growth of South Papua. In addition to investment, workforce training is a key focus so that the [collaboration's] benefits are directly felt by the community," said Apolo.

As an initial step, the South Papua-China Business Forum will be held in November 2025. The forum will serve as a meeting place for potential Chinese investors, local business players, local governments, and other stakeholders to discuss investment potential and follow-up in leading sectors. Afterwards, Ambassador Wang is scheduled to visit Merauke Regency, South Papua, to review the region's potential and conduct a preliminary survey in the waters of South Papua.

Apolo added that Wang's move will further strengthen bilateral relations between Indonesia and China, and it is also expected to have a positive impact on maritime economic development and improving the welfare of the people of South Papua.

"This step is important to ensure that investment provides tangible benefits to the community and improves the skills of the local workforce," he concluded.

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