Province

Southwest Papua

Overview Economy

Papua – Southwest Papua

Southwest Papua, with its capital in the bustling city of Sorong, officially gained provincial status on November 17, 2022, through Law No. 29/2022. The province shares its borders with various neighboring regions: to the north, it adjoins the countries of the Philippines and Palau, as well as the Pacific Ocean; to the east, it borders West Papua’s regencies of Manokwari and Teluk Bintuni; to the west, it shares boundaries with the provinces of Maluku and North Maluku; and to the south, it is bordered by West Papua’s Fakfak and Kaimana regencies.

Covering a vast area of 38,820 square kilometers and home to over 600,000 individuals, Southwest Papua comprises five districts and a city, including Sorong regency, the city of Sorong itself, South Sorong regency, Maybrat regency, Tambrauw regency, and the Raja Ampat regency, known for its island paradise. Additionally, the province features a diverse range of landscapes from mountains to beaches, as well as a rich variety of cultures and wildlife.

Southwest Papua also boasts a diverse religious landscape. As of 2022, a majority of its population practices Christianity at 54.05 percent, and Catholicism at 7.16 percent. Islam also holds a significant presence in the province at 38.14 percent, while Hinduism and Buddhism each make up a smaller portion of the population with 0.1 percent each.

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Economic Description

In 2023, Southwest Papua's Gross Regional Domestic Product (GRDP) surged to Rp 24 trillion, marking a significant milestone considering its status as a newly established province. Among the key contributing sectors, mining and quarrying emerged as a formidable player, generating Rp 3.1 trillion in GRDP. This sector, encompassing activities such as crude petroleum, natural gas, and geothermal exploration, accounted for a substantial portion of the province's overall economic output, with contributions totaling Rp 1.9 trillion.

Furthermore, the construction industry played a pivotal role in driving economic growth, contributing Rp 3 trillion to Southwest Papua's GRDP. This sector's robust performance reflects ongoing infrastructure development initiatives and investment projects across the province, signaling confidence in its prospects and development trajectory.

Additionally, the agriculture, fisheries, and forestry sectors demonstrated resilience and stability, contributing Rp 2.8 trillion to the province’s GRDP in 2023. Southwest Papua holds promise for a thriving agricultural sector, with corn, peanuts, vegetables, sago, cattle, and chicken farming identified as areas with significant growth potential in the region.

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Latest News

January 12, 2025

Southwest Papua Province is one of the best investment destinations in Eastern Indonesia. Nearly Rp1.71 billion of investments entered the province in 2023, far surpassing other provinces in Papua according to Investment Coordinating Board (BKPM) data. In 2024, the total investment entering Southwest Papua reached Rp2 trillion, dominated by domestic investments.

Southwest Papua continues to focus on increasing the promotion of investment interest to the province, such as with the Southwest Papua Investment Year 2024 Exhibition, which was held at the SMESCO Building's Nareswara Ballroom in South Jakarta Administrative City, Jakarta on Dec. 11-12, 2024.

The exhibition, which had "Collaborating Strategic Partnership for Inclusive Sustainable Development" as its theme, was attended by double digits of business entities and institutions from Southwest Papua that presented to tens of potential investors. This exhibition was expected to be a means of promoting the potential and strategic development of Southwest Papua.

"Yes, the total investment that entered Southwest Papua reached Rp2 trillion based on the information I received from the [Southwest Papua] DPMPTSP (Investment and One-Stop Integrated Services Office). It has reached the target given by the BKPM and the central government. The achievement is certainly in line with the investment promotion and interest increasing program that we continue to implement," stated Acting West Papua Governor Mohammad Mus'at when delivering a speech at the opening of Southwest Papua Investment Year 2024 Exhibition.

He added that Southest Papua has prominent competitive value to become the best investment destination in Papua despite being a new province.

"In addition to already having an existing industry, Southwest Papua also has diverse natural resources potential from fisheries, agriculture and plantations, tourism, manufacturing, to the other service sector. We will certainly maximize the existing industrial estates, including utilizing the potential of ports that are crucial for industry," Mus'at elaborated.

In addition to the investment exhibition, the Papua Land Symposium was also held with "Papua Synergy and Collaboration in Inclusive, Equitable, and Sustainable Development Transformation" as its theme. Mus'at was among the symposium's speakers.

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