West Papuan might be one of the paradise islands in the southern part of Indonesia. However, it also has more story behind its potential. One of the things you need to know about west Papua Indonesia is their economy. Considered as one of the lowest or slowest growing provinces in Indonesia, West Papua has some economic points to learn.
The Biggest Economical Values In West Papua
Since West Papua and Papua in general brimming with natural resources, the province has depended on the mining industry. Since the 1970s, the province has been filled with mines that harvest natural minerals. It includes gold, coal, silver, and natural gas. The number of the extraction itself can reach up to 1.063-billion-pound minerals.
It is also home to one of the largest gold mines and copper mines in the world. The mining company itself opens up about 19.500 employees with 51% ownership goes to Indonesia. there is also an effort by the Indonesian government to develop petrochemical mines on the Teluk Bintuni regency. It is one of the things you need to know about west Papua Indonesia.
Other than mining, the West Papua province and locals are also keen on agriculture. It take about 10.4 percent of the West Papua GDP in 2005. Most of the income itself comes from forestry, food crops, and fisheries. One unique fact is that West Papua is one of the last frontiers of forest cover in Indonesia (it has 38 percent of Indonesian remaining primary forest in 2012).
3. Trade and service
Trade and service is another largest economical factor in west Papua. It contributes about 4.0 percent to 2005 GDP. As tourism is brimming in west Papua, most of the income comes from the hotel subsectors. Its conversion reach about 13.2 percent in 2000 -2005.
4. the transport and communication
Another economical sector and thing you need to know about west Papua Indonesia is transport and communication. In 2005 GDP the sector contributes about 3.4 percent include. Most of it comes from the rising demand for sea and air transportation. The significant increase also affects the private enterprise as well as structural or tourism development.
A Continual Economical Increase Since 2015
The low economic growth in west Papua brings up a lot of concern. Indonesia’s government has to start to pay more attention to encourage economic improvement by elevating the trade and service sector. It showed the interest of export of local commodities sector through building a petrochemical industry.
However, thorough out 2011 – 2021, the GDP current price of the west Papua has steadily increase. From the third quarter of 2011, there is an average annual rate increase of 1.32% until the 2nd quarter of 2021. Part of the things you need to know about west Papua Indonesia is that it shows potential growth despite the concern.
Considering how West Papua is one of the most diverse populations and has an abundance of remote areas, the economic condition is pretty much expected. The low number was due to the mostly rural area and tribe communities. The three economical factors are not dead weight. With proper development and exposure, west Papua can turn into a better place to live.