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

May 9, 2025

South Papua Governor Apolo Safanpo expressed his support for the plan to develop a 4,600 hectare (ha) of nucleus estate and smallholder (NES) farming system plantation by the Inggyash Ghuzi Cooperative which involves nine clans in Ulilin District, Merauke Regency, South Papua. The NES system plantation will be built in Selil Village within the district.

He conveyed this support when receiving a visit from the cooperative's management and leaders of the nine clans in the meeting room of the South Papua Governor's Office on May 2, 2025. Also present were representatives of PT Bina Papua Luhurkarya, who were appointed to assist the NES system plantation's development.

"In principle, the government's goal is to improve the welfare of its people. What the Inggyash Ghuzi Cooperative and these nine clans are doing should be an example for other villages around oil palm plantations," said the governor.

Safanpo emphasized his commitment to supporting the initiative as part of the implementation of Presidential Instruction No. 9/2025 on the Establishment of the Red and White Village Cooperative in Each Village. Accordingly, he noted that every plantation company is required by the regulation to provide 20 percent of its area for community NES system plantations.

"This is part of the ideals of President Prabowo Subianto's government to strengthen the people's economy at the village level," concluded Safanpo.

Inggyash Ghuzi Cooperative Chair Ricard Nosai Koula, who is also the Koula Clan Head, said that this initiative has been the local community's hope for a long time.

"We really hope that the development of this NES system plantation will be realized soon, so that the local community has a steady income for the future of their families," he stated.

Similarly, Inggyash Ghuzi Cooperative Deputy Chair Isak Takoi Mahuze gave his appreciation to PT Papua Agro Lestari for allocating 20 percent ​​of their land for the community's NES system plantation. He also urged that the application for the Right to Cultivate (HGU) be issued immediately by the Agrarian Affairs and Spatial Planning (ATR) Ministry/National Land Agency (BPN)  so that development could begin immediately.

Maikuin Clan Head Louis Walter Maikuin and Kaize Clan Head Marten Mbem Kaize also expressed their hope that government support could accelerate development to improve the local village community's standard of living.

Safanpo emphasized his

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