Strategic Efforts to Improve Local Economies in West Papua

Get to Know Local economies in West Papua

One of the contributors to increased economic growth in West Papua Province is the local community’s economy. These local economies in West Papua also help improve local people’s lives.

Not only the people of West Papua must actively develop their economy, but various authorities must also participate. Check out the efforts to improve the West Papua economy through the article below!

Economic Growth Experiencing Increase in 2023

Local Economies in West Papua Increase

This is an encouraging piece of information from West Papua because its economy will experience growth in the first quarter of 2023. Based on the BPS (Central Statistics Agency) report, economic growth in this province is 1.48% (quarter-to-quarter) or 3.13% (year-to-year). [1] 

We cannot deny that big industry plays an active role in this growth, but the local economy has no less impact on the province.

This economic growth was also driven by the relaxation of community businesses, which coincided with the recovery of the national and global economy.

The local government is also trying to help so that every business owner can get capital assistance or loans more easily from Bank Papua. Apart from helping the business, this also plays a role in improving the performance of the regional bank.

Community Empowerment to Improve the Economy

Best local economies in West Papua

For West Papua’s economic reports to continue to be on a positive track, community empowerment is an important aspect that must receive attention.

This is because the role of MSMEs in the regional economy is very strategic and essential. But unfortunately, based on the report of the Indonesian Ministry of Finance in 2022, there has been a decline in the MSME population in West Papua. In 2021, the growth was negative at -48.56% or 3,468 units. [2] 

So that this trend can be stopped, the government must also make various efforts so that MSMEs are increasingly developing in West Papua. This will undoubtedly help make people’s welfare more evenly distributed in this province.

The government has made several attempts to develop MSMEs to make this happen.

1. Community Empowerment

One tangible example is empowering the Margorukun Village, Manokwari, West Papua community.

This village is a transmigration village where immigrants inhabit the majority. Apart from developing MSMEs for local Papuans, fostering transmigration residents is also one way to realize local growth in West Papua now.

This village has great potential, especially in agriculture and animal husbandry. Some are cows, chickens, goats, ducks, fish, rice, avocados, bananas, rambutan, and California Papaya.

The village, which acts as a buffer for the Arfak Mountains Nature Reserve conservation, receives empowerment from the Natural Resources Conservation Agency (BBKSDA). This empowerment aims to increase residents’ knowledge regarding the conservation of natural resources and ecosystems.

The formation of Forest Farmers Groups (KTH) in this area is a way to increase productivity, business, efficiency, income, and people’s welfare. In addition, people are also more aware of environmental sustainability, so they will participate in securing and using it wisely.

One example of the business above is the government’s efforts to improve the MSME sector.

2. Organizing Exhibition Events

With such efforts, MSMEs are starting to stretch again. This can be seen in the exhibition Gerakan Panen Nasional: Bangga Buatan Indonesia dan Bangga Berwisata di Indonesia.” [2]

Many MSMEs took part in the activities resulting from the collaboration between Bank Indonesia and West Papua Province, which took place from 8 to 10 May 2023. At least 55 MSMEs show products from various sectors, such as food, fashion, crafts, and technology. 

The exhibition was made as attractive as possible to attract the attention of young people so that the event was more lively and they became familiar with the processed products of local MSMEs.

With efforts to promote sustainable local economies in West Papua, it is hoped that the economy in this province will be more evenly distributed soon.