Inclusive Economics in West Papua in The 1st Quarter of 2023

Get to Know Inclusive economics in West Papua

At the beginning of 2023, almost all provinces in Indonesia focus on the growth of inclusive economics. The government aims to reach 90 percent in Indonesian financial inclusion by next year. [1] In the first quarter of 2023, inclusive economics in West Papua received a spotlight.

It is because the growth keeps moving in a positive light compared to the previous quarter. Economic inclusion has increased while the poverty and unemployment rates have decreased. 

When the community satisfaction index in West Papua in the past was always far from the national average, now the number is getting closer. Here is the explanation!

The Inclusive Economics Growth Continues to Move in a Positive Direction

The first and second quarter of 2020 was a nightmare for civil society worldwide. There are limitations to the movement of people, which hampers economic growth due to the Covid-19 pandemic. Due to decreased activity, the level of public consumption is automatically decreased. 

It was only improving in the second quarter of 2022, including in West Papua Province. The economic growth in West Papua increased due to the “New Normal” program, where the mobility of people is no longer limited. n general, this is the timeline for growth in Papua:

  1. There is a 6,07% growth in the regional macroeconomy compared to the year 2021. [2]
  2. In the third quarter of 2022, there is a reduction in consumption, which causes economic growth to also fall.
  3. According to the data, the growth is 3,70% from the third quarter of 2021, which came from the gas and oil sector the most. Without the strongest economic sector in West Papua, that is, gas and oil, the growth is only at 3,12% from the same quarter in the previous year. [3]
  4. Fortunately, the economic growth increased again in the first quarter of 2023, up 1.48% from the previous quarter and 3,13% from the previous year. This is because there is an increase in public consumption. 
  5. At the beginning of 2023, there are more people using airplanes, the growth is 11,8%, with an increase in the number of flights by 18,45%. The occupancy rate of star-rated hotel rooms has also increased in West Papua, around 42,93%. [4]

However, the inflation rate in West Papua did rise to 4.5%, which is higher than the government’s target of below 4%. 

The Poverty and Unemployment Rates Keep Decrease

Inclusive economics in West Papua Will Reduce Poverty

The amount of consumption in society really determines the rotation of the economic wheel in West Papua. However, saving is no less important. It is about balance.

The good news is there is a decrease in extreme poverty in West Papua. In the year of 2022, there is only 9,43% extreme poverty left. The numbers decrease by around 0,85% compared to the year of 2021. However, the problem of stunting is still worrying, especially among infants and children. [5]

Aside from that, the welfare of the people of West Papua tends to improve from the previous year. As the economy grows, job vacancies emerge in almost all regions. Although, the development of employment is not evenly distributed as a whole because the focus is on urban areas.

However, this has reduced the unemployment rate in West Papua, which currently only has a 5,53% open unemployment rate. 

The Public Satisfaction Index of Economic Growth in West Papua 

The importance of Inclusive economics in West Papua

In general, there are three indices of inclusive economic assessment in Indonesia. The indices are economic growth and development, income equality and poverty reduction, and expansion of access and opportunity. Fortunately, all of these things keep moving in a positive light in West Papua.

So, there is definitely a growth in inclusive economics in West Papua. This makes the satisfaction index of West Papuan increase to 4.4%, only slightly below national satisfaction at 6%. [6] That is why the government and society must work hard to continue to improve West Papua’s inclusive economy.