The economy is one of many different essential factors to determine the advancement of a region. An economical state in a region is influenced by several factors which are, human resources, natural resources, and technology. As one of the most promising provinces in Indonesia, West Papua possesses a huge economic potential from its natural resources. In this article, we will look into an overview of the West Papua economy, economic potential, as well as some challenges in the development of West Papua Economy.
Mining and Agriculture
For many people, West Papua is a paradise of the East. This statement is true based on the huge potential that this province has. Not only from its cultural and tourism industry but also in terms of agriculture and mining. Looking at the agriculture in West Papua, we can easily amaze ourselves with how much agricultural product this land can produce. According to the 2021 report, the fruit and horticultural industry in West Papua can be categorized as good. This can be seen from the huge amount of products such as corn which can reach 2,264 tons in 2020. In terms of fruit production, West Papua was able to produce 166,429 quintals of bananas in 2020.
Looking at the mining industry, the West Papua economy cannot be underestimated compared to other provinces in Indonesia. One of the regions in West Papua with a huge potential in the mining industry is Teluk Bintuni Region. Not only does it possess a beautiful view, but this region is also rich in oil, natural gas, and coal. In 2019 natural gas potential in this region reached up to 30 trillion cubic feet per day.
Tourism and Export Goods
West Papua is also one of the provinces in Indonesia with huge potential in the tourism industry. National or International tourists are no stranger to Raja Ampat, one of the tourism destinations in West Papua which offers a spectacular view of ocean life. In addition to that, The West Papua government has established two tourism destination areas through a conference which was held in June 2021. Two of the proposed tourist destinations are South Manokwari and Arfak Mountain. Hopefully, this plan will be realized and, as a result, increase the economic opportunity of the tourism industry in West Papua.
Other than tourism, the West Papua economy is supported by some export products. Two of the most popular products in West Papua are Timor fabric and pearl. Timor fabric is a traditionally woven fabric that can be found in South Sorong Regency. While pearls and seaweeds are usually farmed in Raja Ampat Regency.
Challenges
The most recent economic challenge faced by West Papua is the Covid-19 outbreak. Even though West Papua was included in the top 10 biggest positive economic increases in the first quarter of 2021 with 1.47%. However, this economic condition slowly decreases in the following second quarter of 2021. This can be seen by looking at the statistic which shows the negative economic development of West Papua with -2.39%.
Other than Covid-19, transportation is also one of the most challenging problems in the West Papua economy. The difficult terrain of West Papua causes difficulty in terms of transportation between each region. However, the Indonesian Central Government has given the solution for this problem through the development of the Trans Papua Highway. This 7,15 trillion IDR highway is expected to connect some major regions in West Papua. As a result, it is expected that this highway will increase the economy and West Papua development.
In conclusion, West Papua is one of the provinces in Indonesia with a lot of economic potential. Some of the most prominent economic potentials come from the mining and tourism industry. Although faced with multiple challenges, it is projected that West Papua economy will grow stronger in 2021 with the help of implemented government plans as well as support from its residents.
