Accelerated Economic and Infrastructure Development in West Papua

West Papua may no longer be as sparsely populated or remote as its neighboring region, Papua New Guinea. However, when it comes to economic and infrastructure development, the Indonesian government still has a lot of work to do. At present, the focus of Indonesian government is indeed moving towards the eastern region including both Papua and the West.

To show commitment, the government included both West Papua and Papua provinces in the National Medium Term Development Plan. This medium-term plan came into effect in 2015 and will last until 2019. As if to prove seriousness, the government has also started building various infrastructures. The 5-year long plan consists no less than 59 infrastructure projects for the West region alone.

The wind of change

The eastern Indonesia region may be widely known as one of the richest in terms of natural resources. Not only in the nation, but also across the globe. It’s unfortunate that the region remains one of the most difficult to reach. Inadequate transportation and infrastructure, as well as poor maintenance affected Papua’s contribution to Indonesian economy.

Economic growth in the province took a deep hit in 2014. Previously recorded at 14.8-percent, in 2014 the growth fell all the way down to roughly 3.25-percent. Such declining trend undoubtedly affected global commodity and price movements. However, it’s worth noting that when compared side by side, West Papua was still considerably stronger by 5-percent than Papua.

These issues were not lost on the current Indonesian President as he stated during the time he took the office. Joko Widodo made it clear that infrastructure development across the archipelago was one of his main policies. He truly believed that adequate infrastructures would not only boost local economy, but also raise their living standards.

West Papua, along with Papua, were at the top of his priority list. The fact that these remote regions have largely been untouched and majority of its population living below the proverty line became his number one concern. At the time, many Papuans remain skeptical. Now three years into the development plan, the commitment of the Indonesian government is no longer questioned.

The government undeniably spends quite a huge chunk of money to make it happen. For these programs alone, the latest figure on the amount of money allocated last year is 6.4-billion. This amount is expected to raise as the program is still ongoing. Despite the fact that development is far from finish, the impact has already been seen.

Economic growth in both West and Papua provinces are improving in a surprisingly rapid manner. Last year alone, the economic growth improved to a whopping 8.76-percent each year. To understand the significance, the number is double the Indonesian national economic growth. This impressive improvement is predicted to continue along with the development of the regions’ infrastructures.

Sector contribution to West Papua economy

With the newly improving economic growth in West Papua and Papua, questions regarding their sensational declining trend in 2014 raise. West Papua did slightly well compared to the Papua region. To some, this might be confusing. Two remote provinces, completely different outcome. In order to understand the issue, one must be aware of the variables involved.

One of the variables is undoubtedly the contribution of various economic sectors of each province. Unlike its neighboring region, the economic of Papua region is largely dominated by the mining sector. At the time, this particular sector was struck down by the decreasing prices of global commodity. With more than 29-percent of share, it’s no wonder that the repercussion negative impacted the region.

This is not to say that the West Papuans do not benefit from the same sector, however. With just 20.7-percent contribution from mining, the region was not affected as badly. Not to mention the fact that West Papua is also supplemented by 30.1-percent share from oil and gas processing sector. With this addition, it was obvious that the negative impact could at least be balanced out from another post.

BP. Tangguh’s ongoing project which takes place in Teluk Bintuni has been the greatest economy contribution in West Papua. Whereas in Papua, PT. Freeport holds the honor. However, these two sectors are not the only thing that keeps the economy growing. The Papua region has always been relying on not only its mining sector, but also on the government services.

When the aforementioned services couldn’t be delivered on time due to inadequate infrastructures, Papuans in this region were badly hit. However, with the new development, it’s obvious that the future is bright for both the West Papua and Papua regions. As the home to various natural-based resources, adequate infrastructures are not only important but also critical.

This undoubtedly shows that this particular eastern Indonesia region does not only have incredible potentials in terms of economic growth. But also astounding degree of fund dependence from regional and state budgets. With the ongoing development, there is no doubt that economic growth in the West Papua region can be accelerated.

Source: https://westpapuaupdate.com/accelerated-economic-infrastructure-development-west-papua/