West Papua Has Great Potential to be East Indonesia’s Economic Driving Force

Papua’s Contribution to the National Economy

In accordance with the theme of the Government Work Plan (RKP) of2018, the development of the region is aimed at the growth and even distribution of development.

The growth of regional development in 2018 will be driven through the growth of the service, processing and agriculture sectors.Increased contributions from these sectors are carried out in line with the continuous development of strategic areas in the main prime mover areas,including the Special Economic Zones (KEK), Industrial Zones (KI), Urban Areas(Megapolitan and Metropolitan ), Tourism Areas and Regions based on agriculture and potential areas such as Agropolitan and Minapolitan.

In terms of development equity, the regional development policy is aimed at reducing regional disparities especially for the development of the Western and Eastern Regions of Indonesia, including rural, disadvantaged and border areas

.The policy implemented is to encourage the transformation and acceleration of infrastructure development and encourage increased investment in Papua, Maluku, Nusa Tenggara,Sulawesi, Kalimantan and Sumatra areas while maintaining the momentum of the development of the Java Region.

Regional development is based on 7 (seven) areas of island development,namely; Region of Papua Island, Maluku Islands Region, Region of Nusa Tenggara Island, Region of Sulawesi Island, Region of Kalimantan Island, Region of Java-Bali Island and Sumatera Island Region.

The regional development target of 2018 is aimed at growth and even distribution among regions by further enhancing the economic role of the outer islands.

By 2018, the role of Papua region to the national economy is expected to increase focusing on developing the potential and superiority of the Papua region.

Meanwhile, infrastructure development is directed at efforts to decrease the gap in Papua, especially in mountainous areas.

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By 2018, the regional economy of Papua Island is expected to increase its contribution to 1.88% to the national economy, with an average growth rate of at least 6% by 2018.

Papua region has great potential to be the driving force of the eastern Indonesian economy through abundant natural resources in various sectors such as fisheries, agriculture/ plantation, agro and food industries, marine and natural tourism, and mining.

The direction of development policy in the Territory of Papua Island is also aimed at supporting efforts to create an indigenous village based development center supported by reliable infrastructure and facilities.

By 2018, the target of the Papua Region Economic Growth Rate is at least 6%, while the poverty target is lowered to 26%, and the target of open unemployment rate is expected to be a maximum of only 4%.

The details are economic growth target of at least 6%, 23% maximum poverty rate, and a maximum unemployment rate of 8% in the province of West Papua.

While in Papua province,a minimum economic growth rate of 6%, maximum poverty rate of 27%, and unemployment rate up to 4%.