Home ยป Can Reach 5.20 Percent Growth in West Papua, Bank Indonesia Encourages Development of Non-Oil and Gas Sector

Can Reach 5.20 Percent Growth in West Papua, Bank Indonesia Encourages Development of Non-Oil and Gas Sector

by Senaman
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MANOKWARI, WEST PAPUA – The Representative Office of Bank Indonesia of West Papua Province projects that West Papua’s economic growth in 2024 could reach 4.40 to 5.20 percent. Head of Representative of Bank Indonesia West Papua Setian, said the dominance of the oil and gas sector in West Papua needs to be balanced with the development of new economic sectors so as not to continue to be dependent and that in the monetary-fiscal dissemination held by KPw Bank Indonesia West Papua together with the Regional Office of the Directorate General of Treasury West Papua Province at the State Finance Building Manokwari. The dissemination was entitled Monetary-Fiscal Strategy in Encouraging Inclusive and Sustainable Economic Growth of West Papua Province.

The event was attended by several officials, namely:

  1. Acting Regional Secretary of West Papua Province Yacob Fonataba,
  2. Head of Representative of DJPb West Papua Purwadhi Adhiputranto and staff,
  3. Forkopimda West Papua,
  4. OPD leaders of West Papua Province,
  5. Bank leaders
  6. Entrepreneurs.

Setian reported that in the first quarter or the period January to March 2024, the West Papua economy (still including Southwest Papua Province) grew 2.27 percent, “slowing down from the fourth quarter of 2024 which grew 5.89 percent. Growth in the first quarter was mainly supported by high growth in the government administration business field,” Setian said. Inflation in West Papua in 2024 is expected to be maintained within the national target range for 2024-2025 of 2.5+1 percent. In April 2024, West Papua Inflation was at the level of 0.17 percent, 1.43 percent, or 3.59 percent, within the framework of West Papua’s financial system stability, financial intermediation performance is still in a safe corridor. This can be reflected in West Papua’s Third Party Funds in April 2024 recorded continued growth of 3.51 percent, slightly higher than the growth in March 2024.

The increase in Third Party Funds indicates an increase in deposits after Eid al-Fitr as well as reflecting an increase in West Papua’s economic activity, by sector, West Papua’s lending is mainly channeled to the wholesale and retail trader sector.

The fiscal strength of government spending and revenue is still the driving force of the West Papua economy and he encouraged the acceleration of spending and revenue effectiveness through a strong commitment from policy makers. Head of Representative of the Directorate General of Treasury of West Papua, Purwadhi Adhiputranto, revealed that the performance of the West Papua Regional State Budget as of March 2024 is on track, which is solid and credible in maintaining economic stability.

State revenues have reached Rp 498.87 billion, equivalent to 14.07 percent of the revenue target in 2024, while state expenditures have reached Rp 4,318.48 billion or 15.04 percent of the budget ceiling, the Regional Government needs to guide the Papua Development Acceleration Master Plan in program planning, especially with the Special Autonomy Fund.

For information, in fiscal year 2024, West Papua Province received an allocation of the State Budget of Rp17.25 trillion, of which Rp11.35 trillion was allocated for TKD and Rp5.9 trillion for Ministry or Institution expenditures. The TKD allocation includes:

  1. Revenue Sharing Funds Rp 3.24 trillion,
  2. General Allocation Fund Rp 4.32 trillion,
  3. Physical Special Allocation Fund Rp 828.21 billion,
  4. Nonphysical Special Allocation Fund Rp 511.31 billion,
  5. Fiscal Incentive Fund Rp 14.41 billion,
  6. Special Autonomy Fund Rp 1.75 trillion,
  7. Village Fund Rp 681.14 billion.

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