Economic activities in Papua cannot be separated from its rich natural products. For this reason, many industries have a significant influence on economic development. West Papua has many concepts regarding industrial companies to achieve the prosperity of its people. If you want to know more in detail, here’s more information.
Industry Concepts and Definitions
Papua is famous for its diverse natural products. As a result, many processing industries take advantage of these commodities. It focuses on an economic activity that carries out activities in converting a finished or semi-finished product. Generally, this involves goods of less value to have more added value. It includes the assembly and tolling industry.
In addition to having development in the processed industrial sector, there are also industrial services. These activities can serve the needs of other parties to achieve specific results. In this activity, raw materials are provided for other parties to process them further. So a third party only performs processing in exchange for a sum of money, goods or services.
Simultaneously, there are types of industries managed by industrial companies or enterprises. It focuses on a single business unit carrying out specific economic activities. The purpose of this activity is to produce goods or services which are located in a particular building or location in West Papua.
In this case, the processing industry companies have four groups. First, there are enormous industries with a workforce of 100 or more. In addition, there are also medium-sized industries with workers ranging from 20 to 99 people. Not only that but there is a small industry (5-19 people) and a home industry (1-4 people). The classification is based on the number of workers who join.
Papuan Industrial Project
Papua’s wealth cannot be judged by anything because it is very abundant. The fastest growing industry in Papua is in the energy sector. Industrial expansion in Papua is beneficial to various worlds. Its mining has been able to improve economic conditions in recent times. Likewise, the multinational oil energy price record.
Papua is famous for its liquefied natural gas or Tangguh LNG plant in Bintuni Bay. It contributes significantly to economic development in Papua. Communities around Papua have the opportunity to join the growing industry on their land. It has a good impact on the economic conditions in Papua as a whole.
According to records, other industrial groups that experienced an increase came from the metal and electronics sector. Furthermore, this number was followed by developing the food, beverage and tobacco industries in West Papua. Not only that, but the handicraft industry, chemical and building materials industry, and the textile industry are ready to develop.
Industrial Development
The potential of mineral and energy resources in Papua is indeed a significant center in accelerating economic growth. In order to develop investment growth, permits are facilitated and must meet standards. It can prevent various kinds of over-exploitation and good energy management in the Papua region.
Besides being famous for its mining, the government is offering a fertilizer and petrochemical plant construction project in Bintuni Bay. This bay not only provides a significant source of energy but also has another potential. It will be beneficial for developing infrastructure and ports that support the factory widely.
The aim of the government offering the project is simply to develop the economy of the West Papua region. It is a new breakthrough to boost the local and national economies. In addition, the purpose of building the factory is due to the great demand for domestic downstream industries with petrochemicals.
For this reason, petrochemical products must immediately experience development in Indonesia. As a result, the government seeks to support the development of the industrial economic sector in Papua. The upstream petrochemical industry provides a qualified supply so that it can develop further. That way, the government has a sustainable development plan for the next stage.
The government’s plan is to get better by building a fertilizer and petrochemical factory in Papua. Moreover, several foreign investors have been lured into developing this project to take place as soon as possible. Even so, many things must be prepared to carry out the project. It is because there are obstacles that cannot be avoided.
The plan to build the factory did come with obstacles since it was first designed. One of the primary constraint schemes that will become obstacles in the future is the issue of gas allocation and availability. As a result, the West Papua region will also develop economically because there is a significant effect.
Overall, the industry in Papua is not only focused on the mineral and energy sectors. There are many industrial focuses on supporting local and regional economies. One of the efforts is to create an effective program and team to implement it. In addition, some industries are growing rapidly along with their infrastructure, such as petrochemicals, etc.
