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

September 11, 2024

National Energy Council (DEN) member Musri Mawaleda said that the preparation of a work program for the development of renewable energy (renewables) in West Papua Province must be adjusted to the needs of the local community.

Musri Mawaleda stated in Manokwari Regency, West Papua on Aug. 7, 2024, said that policymaking on the matter should take into account local wisdom so that indigenous peoples also feel the benefits of developing a renewables mix in line with sustainable development goals.

"The development of renewables, especially primary energy, needs to look at two sides, namely supply and demand," he noted.

Musri suggested that the relevant regional government formulate a constructive and effective framework in implementing West Papua Province Regional Regulation Number 2 of 2024 on the Regional Energy General Plan (RUED) properly.

The policy aimed for the transformation of the renewables mix to be carried out evenly across the urban to rural areas of West Papua's seven regencies.

"For example, have [the need] of all regions for electrical energy been met or not. It must be observed holistically," he said.

Musri added that the geographical conditions in Papua as a whole is very suited for the development of new and renewable energy (NRE) due to its wealth of natural resources, thus it could overcome the problem of inequality in access to energy.

The use of NEW is also a solution to the high cost of investment in building electricity networks, and the distribution of fuel to rural areas located in the mountains or remote hinterland regions.

"If the government can develop NRE in villages that, let's say, have a limited population, then it is very good. Said NRE cannot be sold outside the region," he explained.

He considered West Papua to have the potential to develop biofuel energy, but the local government must first educate and improve the ability of local communities to produce biofuel from sugar palm trees. Biofuel is a renewable energy that is not only environmentally friendly, but also relevant to West Papua's sustainable development goals.

"Biofuel production can be carried out independently by the local community. If that is realized, then the local community will not be dependent on fossil fuels," he said.

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