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The construction of a plywood factory in Wondama Bay Regency, West Papua Province is expected to improve the local economy. However, the process for releasing 60 hectares (ha) of forest area to PT Wijaya Sentosa factory is still ongoing at the Forestry Ministry.
West Papua Province Forestry Office Head Jimmy Walter Susanto stated that even though he had received the West Papua Governor's recommendation for the project, changing the status of the forest area from a forest plantation to an "other industrial use" area required a long process
"This process is estimated to be hampered by the reorganization of the Forestry and Environment Ministry, which has caused several positions to remain unfilled," Jimmy told reporters in Manokwari Regency, West Papua on Feb. 24, 2025.
The West Papua Provincial Government hopes that the land release process could be completed this year so that the factory can begin operating and employing local workers in 2025. The release of this forest area involves changing the status of the land from a forest area to a non-forest area. Because the factory's production capacity is above 6,000 units, the permit is under the authority of the Indonesian government.
Papuan People's House of Representatives (DPRP) representative Ferry Auparay assessed that the presence of a plywood factory in Dusner Village, Kuri Wamesa District, Wondama Bay Regency has the potential to create substantial new jobs as the area has quite large potential for wood production.
He urged the West Papua Provincial Government to provide full support for the investment without burdening investors with excessive requirements. Auparay proposed that the relevant regional government only ask for contributions to locally-generated revenue (PAD) after the company is operating and making a profit.
He also highlighted the economic dependence of the people in Wondama Bay Regency to regional government spending, especially from government projects. Therefore, he urged the elected Regent and Deputy Regent of Wondama Bay to immediately design an investment strategy for reducing unemployment and encouraging sustainable economic growth.
In addition to the plywood industry, the fisheries and large-scale aquaculture sectors are also considered to have potential to create significant amount of jobs for people in the region.
"If companies such as plywood, fisheries, or large-scale aquaculture operate in Teluk Wondama, many people will be employed as workers," said Auparay.