West Papua is a province located in the western part of the island of Papua, Indonesia. The province’s economy depends on the agriculture, livestock, forestry, fisheries, and mining sectors. The province has high potential in agriculture, with main products such as coffee, cocoa, and palm oil. In 2014 and 2015, timber production from natural forests decreased, especially timber produced from business licenses for utilization of natural forest timber products (IUPHHK-HA). In 2014 from the target of 625,942 cubic meters, only 28.46% was produced, while in 2015 from the production target of 1,278,500 cubic meters only 20% was produced.
West Papua’s economy also depends on the fisheries sector, with main products such as mackerel, tuna, and mackerel. The province has a high potential for fisheries, with many ports and enough sea area to accommodate fishing vessels.
The mining sector is also one of the important economic sectors in West Papua, with many mineral resources such as gold, copper, and tin. In 2021, the poverty rates of Papua and West Papua provinces are still the poorest in Indonesia. In 2021, the poverty rates of Papua and West Papua provinces are still high, at 38.9% and 38.8% respectively.
The micro, small, and medium enterprise (MSME) sector is also one of the important economic sectors in West Papua. MSMEs have a labor absorption rate of around 97% of the entire national workforce and have a large contribution to Indonesia’s Gross Domestic Product (GDP). The MSME sector in West Papua has high potential, especially in the fields of timber production, fisheries, and agriculture.
As an effort to develop the economy of West Papua, the government provides poverty reduction programs, such as the National Poverty Reduction Program (PNPM) Mandiri Urban. This program is intended to restore the spirit of gotong royong, empower the community, and restore the Papuan people’s trust in the local government.
Exports and imports are also an important factor in developing West Papua’s economy. Indonesia’s exports in 2021 grew 24.0 percent, while Indonesia’s imports also began to recover in 2021 by recording a growth of 23.3 percent.
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West Papua has high potential in the economic sector, especially in agriculture, fisheries, mining, and MSMEs. The government and the community must work together to develop the province’s economy, such as by developing infrastructure, improving accessibility, and developing micro, small, and medium enterprises.
