According to BPS, West Papua’s economy grew by 2.01% in 2022. It is good news since, in 2021, the economy of this province only grew 0.51%. However, this growth is still below the national economic growth of 5.31%.
It seems that the West Papua crisis has ended. Since 2018, its economy has developed well. In 2018, it grew by 6.25%. Then, in 2019, it decreased by 2.66%. Next, in 2020, its economy dropped to -0.76. Meanwhile, in 2021, it still degraded by 0.51%. The pandemic caused this degradation.
What kind of businesses support this economic growth? Here is a brief explanation of it.
West Papua’s Industries that Support Economic Development
There are three industries contributing to the growth of the economy in West Papua. These businesses improve Gross Regional Domestic Product in this province. First, the processing industry contributes 26.84%. Then, mining supports 18.25%. Last, the construction industry contributes 13.5%.
Those industries had a great performance in 2022. The main reason for this improvement is the impact of the improvement of community mobility. We all know that the government of Indonesia eases the restrictions on community activities. This way, people can do their economic activities normally.
It is undeniable that the pandemic really affects the fluctuation of the West Papua economy in the last 5 years. Nowadays, the economy can achieve the highest growth when Indonesia has passed the pandemic successfully.
Bank Indonesia Prediction
Knowing the economy’s improvement, Bank Indonesia predicts it will grow higher in 2023. This projection is in line with the increase in public consumption and the growth of the business field.
Besides, Bank Indonesia also predicts that Mining and Processing Industry will have better performance and greater contribution this year. The reason is the improvement of Liquid Natural Gas (LNG) production in Teluk Bintuni Regency.
LNG has become one of the best West Papua resources that supports the growth of the Mining and Quarrying industry. Furthermore, the economy will grow better if it gets support from other resources in this province.
We all know that West Papua has rich and enormous natural resources. When all parties, including the government and private companies, work together. It will be easier to achieve the realization of economic development.
How to Achieve Sustainability through Economic Growth
When we talk about West Papua, you may realize that their prosperity is still low. Even though they have a lot of natural resources, most of them still live below the standard. Therefore the government always tries to find a way to improve their welfare. Here are the current agendas of the Indonesian government.
1. Developing Human Resources
The quality of human resources in West Papua may be lower than in other provinces. It is because the quality of education in this province is also low. To improve education quality, the government provides bigger funds.
2. Exploring More Natural Resources
West Papua has various resources. But they are not fully utilized. For example, the government only focuses on exploring mining. Many experts suggest the government develop other potentials such as tourism and agriculture.
3. Building Infrastructure
Developing infrastructure in this area is challenging because it has a unique landscape. Therefore, the government should build more roads to connect the remote area to the big city. As a result, all residents can access public facilities such as hospitals, markets, etc.
4. Simplifying Bureaucracy
The main problem in Indonesia is a complicated bureaucracy. This problem occurs not only in Papua but also in most regions throughout the country. But Papuans may face harder challenges. They may need to spend much time going to the government office. To simplify the bureaucracy, the government needs to utilize technology.
That’s all the West Papua latest news. By implementing the agenda above, it will be easier to achieve West Papua’s economic growth. As a result, all Papuan can live better like citizens in other provinces.
