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

August 6, 2025

The West Papua Province Investment and One-Stop Integrated Services Office (DPMPTSP) recorded realized investments to West Papua reaching nearly Rp13.04 trillion. West Papua DPMPTSP Head Godlief Aponno stated in Manokwari Regency, West Papua on July 8, 2025, that foreign investments significantly contributed to the province's overall investment performance.

"The 2024 investment target was Rp2.42 trillion, hence [realized investments] exceeded [the target] by 538.68 percent," he informed.

Godlief added that foreign investments to the province in 2024 rose by from Rp412.367 billion recorded in 2023 across 95 projects to almost Rp11.67 trillion across 240 projects, which encompass four primary businesses, five secondary businesses, and seven tertiary businesses.

"Two sectors played a significant role are the non-metallic minerals manufacturing sector [of the secondary sector category], followed by the electricity, water, and gas sector [of the tertiary sector category]," he explained.

Godlief revealed that realized domestic investments to West Papua rose from almost Rp1.26 trillion across 1,301 projects in 2023 to nearly Rp1.38 trillion across 1,901 projects in seven regencies.

"The number of domestic investment projects in 2024 increased by 600 projects from the previous year, thus increasing the overall [domestic] investment value," Godlief said.

He stated that the investment achieved for 2024 was inseparable from the regional government organizations, including their respective DPMPTSPs, in West Papua's seven regencies—namely Manokwari, South Manokwari, Arfak Mountains, Bintuni Bay, Wondama Bay, and Kaimana.

"We continue to remind companies to report their LKPM (Investment Activity Reports) regularly through the online single submission risk-based approach (OSS RBA) system," Godlief elaborated.

He informed that the regional government is currently intensifying outreach and education activities to increase public understanding of the positive impacts of investment on development, as the involvement of all stakeholders to create a welcoming and secure regional situation would attract investor interest to place their capital in West Papua.

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