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

January 15, 2025

One of the actions pursued by Creative Economy Ministry as part of its commitment to improve the development of South Papua Province's creative economy sector is by holding a creative economy startup incubation program for the culinary, music, and performing arts subsectors in Merauke Regency, South Papua.

"This series of (startup) incubations is planned to be held on Dec. 14, 2024, during my work visit to Merauke. The Creative Economy Incubation aims to create an ecosystem conducive for [fostering] creative economy actors," said Creative Economy Minister Teuku Riefky Harsya in a press statement in Jakarta on Dec. 13, 2024.

Riefky said that the three subsectors have the potential to make creative economy a new engine of economic growth for the people of Merauke, as the regency plays an important role in meeting the food and agricultural needs of South Papua and its surroundings.

"[The initiative will become a new engine for economic growth] by utilizing technology and innovation to support creative economy development and through collaboration between the agricultural and creative economy sectors. [The fostered startups] are expected to create products that have added value and are competitive in the local, national, and international markets," said Riefky.

He emphasized that the incubation of performing arts and music startups was accelerated through an activity titled "Ermukim Party", which consists of dance and rap competitions that showcase the talents of South Papua's youth.

"The activitiy is expected to help foster unity between more young people in Merauke [Regency]. Then, they can support each other to develop their talents in every artistic field they master," Riefky explained.

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