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

April 23, 2025

The Energy and Mineral Resources (ESDM) Ministry announced the winners of the auction for five oil and gas working areas (WK), namely WK Kojo offshore Makassar Strait, WK Binaiya offshore Maluku, WK Serpang offshore East Java, WK Gaea in West Papua Province, and WK Gaea II in West Papua. The total investment commitment collected reached US$21.7 million (Rp364 billion at Rp16,800 per US$1).

"The total investment commitment for the first three years of exploration in the five WKs is US$21.7 million," said Acting ESDM Ministry Oil and Gas Director General Tri Winarno stated in a virtual announcement on Apr. 16, 2025.

Armada Etan Limited is the winner of the auction for WK Kojo, which has total estimated oil reserve of 90.2 million barrels of oil and 2.1 trillion cubic feet (ft3) of gas. The firm's total commitment for the first 3 years of exploration is US$2.1 million.

Next, a consortium of PT Pertamina subsidiary PT Pertamina Hulu Energi (PHE), Petroliam Nasional Berhad (PETRONAS) subsidiary PC North Madura II, and SK Innovation Co., Ltd. subsidiary SK Earthon Co. won  the WK Binaiya auction, with their total commitment for the first thre years of exploration at US$6.5 million. The working area's oil and gas reserves are estimated to reach 6.7 billion barrels of oil and 15 trillion ft3 of gas.

Then, the winner of the WK Serpang ​​auction is a consortium of PC North Madura II, INPEX Corporation, and SK Earthon Co, with their total commitment for the first three years of exploration reaching US$4.7 million. The total estimated oil and gas reserves of the working area reaches 1.2 billion barrels of oil and 6.3 trillion ft3 of gas.

Finally, the winner of the auctions for WK Gaea I and WK Gaea II is a consortium of Enquest Petroleum Production Malaysia, PT Agra Energi, BP Exploration Indonesia, MI Berau, CNOOC Southeast Asia Limited, ENEOS Xplora, Indonesia Natural Gas Resources Muturi, and KG Wiriagar Petroleum.

The total commitment for the first three years of exploration in WK Gaea I reaches US$4.95 million, with the working area's estimated oil and gas reserves reaching 9.6 billion barrels of oil and 71.8 trillion ft3 of gas. Meanwhile, the total commitment for WK Gaea II is US$3.45 million for the estimated oil and gas reserves of 8.5 billion barrels of oil and 35.1 trillion ft3 of gas.

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