Home ยป Papua’s Economic Growth Predicted to Reach 5% in 2024

Papua’s Economic Growth Predicted to Reach 5% in 2024

by Senaman
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Papua, one of the provinces in Indonesia that is rich in natural resources, is predicted to experience significant economic growth in 2024. The Representative Office of Bank Indonesia (BI) Papua Province estimates that economic development in this area will reach around 5%, driven by various factors that synergize.

According to the Head of BI Papua’s Regional Economic and Financial Policy Formulation Team, Agni Alam Awirya, the economic growth prediction is mainly due to two main factors: economic recovery after the COVID-19 pandemic and the upcoming 2024 General Election (Pemilu) activities. The economic activity that has rebounded after the pandemic has contributed positively to regional economic growth.

During the pandemic, Papua’s economy experienced severe challenges like other regions in Indonesia. Mobility restrictions and decreased economic activity have an impact on various sectors, especially the mining and plantation sectors which are the mainstay of Papua’s economy. However, with the easing of the pandemic and increased vaccinations, economic activity has begun to recover gradually.

Sectors that had been sluggish are starting to show signs of recovery. The mining industry, which is the backbone of Papua’s economy, is operating at full capacity again, while the agriculture and plantation sectors are also starting to rise. This provides a significant boost to regional economic growth.

The 2024 general election is expected to have a positive impact on Papua’s economy. Election preparation and implementation typically boost economic activity through various government and private expenditures. Campaign activities, procurement of election logistics, and mass mobilization have an impact on the services, trade, and transportation sectors.

In addition, elections also promote political stability and investor confidence, which in turn increases investment in various sectors of the economy. This confidence is important for Papua, which has great potential but needs political stability and security to attract long-term investment.

The development of the energy sector also plays an important role in Papua’s economic growth. PT PLN Papua, for example, has launched a “zero accident” program to improve the quality of electricity in the area. The program aims to minimize work accidents and improve the efficiency and reliability of electricity supply, which is critical to economic activity and community welfare.

In addition, PLN also encourages the use of green energy for various businesses in Papua. This initiative not only supports environmental sustainability but also creates new opportunities for local economic development. The use of renewable energy is expected to reduce operational costs for businesses and encourage innovation in the energy sector.

Although Papua’s economic growth forecast looks optimistic, several challenges need to be addressed. Inadequate infrastructure in some areas, limited access to education and health, and security issues in some areas are still obstacles. However, with the government’s commitment and the cooperation of various parties, these challenges can be overcome.

The central and local governments continue to improve basic infrastructure such as roads, bridges, and health facilities. This infrastructure development is expected to open wider access to various remote areas in Papua, thereby encouraging economic equality and improving the quality of life of the community.

Overall, the prediction of Papua’s economic growth of 5% in 2024 reflects optimism based on various positive factors. Post-pandemic economic recovery, the positive impact of the election, as well as the development of the energy and infrastructure sectors, are expected to contribute significantly to the welfare of the Papuan people. With the synergy between the government, private sector, and the community, Papua has great potential to grow and develop better in the future.

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