Province

West Papua

Overview Economy

Papua – West Papua

West Papua, previously known as West Irian Jaya, is a province of Indonesia located on Papua Island. The province has the Pacific Ocean lapping at its northern shores, and to its west lies the Southwest Papua province along with the Halmahera and Ceram Seas. Its southern border is the Banda Sea, while its eastern border is bounded by Central Papua province and Cendrawasih Bay.

Covering an area of 99,398 square kilometers, West Papua is home to 568,805 individuals and is divided into 13 districts. Manokwari, a coastal town in Mankowari regency, serves as both the administrative center and capital city of West Papua. Manokwari also thrives as West Papua’s center for business and economic activity. Moreover, the city is well known as the “Fruit City” of West Papua as it boasts a rich variety of fruits such as durian, rambutan, mango, avocado, and matoa.

West Papua presents a diverse landscape of religious beliefs, ethnicities, and languages. Almost half of the population adheres to Christianity at 53.32 percent, followed by the Muslim population at 38.12 percent, and Catholics at 8.40 percent, with other religions representing less than one percent. This rich tapestry extends to its people, with indigenous Papuans, encompassing ethnicities such as the Lokal, Arfak, Biak, and Yapen people, forming the majority of the population. Their traditions and languages contribute significantly to the cultural vibrancy of West Papua.

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Economic Description

West Papua boasts a vibrant economy. In 2023, the province’s economy generated a significant Gross Regional Domestic Product (GRDP) of Rp 40.9 trillion. The economic landscape is driven by several sectors, with the processing industry contributing the largest at Rp 16.1 trillion, followed by the mining sector at Rp 9.3 trillion, and the construction sector at Rp 5 trillion.

Although the processing industry contributes the most to West Papua’s GRDP, the mining sector, as a leading sector in the region, holds substantial potential. The sector’s main commodities include oil, gas, and geothermal. Additionally, gold is also a leading commodity in the mining sector. West Papua's rich gold deposits offer immense potential for mining sector development, attracting investors with a keen eye for valuable resources.

Construction, while among the top three contributors to the province’s GRDP, is not the province’s leading sector. Other sectors such as fisheries and tourism are considered leading sectors in West Papua. The province’s wealth of marine resources offers ideal conditions for flourishing fish farming, with the fisheries sector contributing around Rp 1.4 trillion in GRDP. The sector’s main commodities include tuna, skipjack, and mackerel tuna.

Furthermore, the tourism industry in West Papua is experiencing steady growth, showcasing the province’s well-managed potential for sustainable tourism. Investment opportunities abound in initiatives such as the integrated tourism development in the Mount Botak area, which includes tourist facilities, café and restaurants, and the construction of public facilities. This development aims to establish Mount Botak as a prominent tourist destination for both domestic and international visitors within West Papua.

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Latest News

November 5, 2024

The West Papua Province Investment and One-Stop Integrated Services Office (DPMPTSP) claims that realized investments to West Papua has reached Rp3.7 trillion for 2024.

West Papua DPMPTSP Head Godlief Aponno stated in Manokwari Regency, West Papua on Oct. 18, 2024, that the provincial government continues to strive to maintain the province's investment climate by easing the requisite permit process. The transformation in investment licensing supported West Papua into exceeding the Rp1.4 trillion investment target for 2024 set by the Investment Ministry/Investment Coordinating Board (BKPM).

"In the first half (H1) of 2024, West Papua has exceeded its [investment] target. This is an extraordinary achievement," he noted.

Godlief added that the provincial government and seven regencies throughout West Papua need to align their perspecties so that the positive performance in 2024 could be maintained in the coming years. That need is the basis for implementing a technical coordination meeting to discuss other potential investments that could be developed in West Papua, promotional strategies, as well as solutions to the challenges that will be faced in attracting investments.

"We are reviewing which recommendations have been followed up, and which ones that have not," he said.

Godlief revealed that the West Papua DPMPTSP and the regencies redid the West Papua's investment potential during the technical coordination meeting to adjust it in line with the province's general investment plan (RUPM).

One of the potential investments that was in focus at the meeting is the optimization of micro, small, and medium enterprises (MSMEs) so they could contribute to regional investment performance.

"West Papua has a lot of potential, [such as in] fisheries, tourism, and others. But studies involving academics are needed for that potential to become opportunities," Godlief said.

He also noted how the regional government needs support from traditional and community leaders to overcome the problem of legal certainty over land that has the potential to hinder investment growth in West Papua. The understanding of the community, especially indigenous communities, regarding the benefits of investment for West Papua's economy and employment is an important factor in solving said issue.

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