Jakarta, Nov 9 (Antara) - The economy of Indonesia's easternmost province of Papua is slowing down, although it has been flourishing in recent years under the administration of President Joko Wododo (Jokowi).
In 2015, for example, Papua saw an economic growth of 7.47 percent. It shot up last year to 9.21 percent, almost double the national average figure of 4.95 percent.
The high economic growth was because of the government's attention towards the development of Papua's infrastructure, improvement of its welfare and health facilities, as well as the launch of the single-fuel price program. Papua is one of Jokowi's top priorities.
He has many plans to make sure that the rapid growth in Papua keeps going, such as single-fuel price, Trans Papua Road, Sea Toll, Sorong Special Economic Zone, and others. He hopes to bring positive changes in Papua, even if at a slower pace.
"We can see that there is a decrease in poverty rates in Papua Province," Papua Governor Lukas Enembe was quoted by papuanews.org as saying last year.
However, the decline in the food crop production and public expenditure, as well as the prolonged contractual dispute between the government and PT Preeport Indonesia, which prompted the giant miner to temporarily suspend production, has resulted in slow economic growth in Papua.
The subsidiary of the US-based Freeport McMoRan has been in a dispute with the government, following the issuance of new regulations that oblige the company to convert its contract of work into a special mining license, divest 51 percent of its shares, and build a new smelter.
The mining sector is the main contributor to Papua's economic growth. With the decline in quarrying and mining production, the economic growth of Papua is expected to fall to about 3 percent this year.
"Overall, the economic growth in Papua is predicted to stand between 3 and 3.5 percent year-on-year in 2017," Joko Supratikto, the head of Bank Indonesia's Papua representative office, was quoted as saying by the Jakarta Post last March.
The Central Bureau of Statistics (BPS) of Papua Province has revealed a growth in Papua's economy by 3.40 percent in the third quarter of 2017 compared to the third quarter of 2016 (year-on-year).
Head of BPS for Papua, Simon Sapari, remarked in Jayapura on Tuesday (Nov 7) that the growth is slower than in the previous quarter, which grew 4.88 percent.
"This is due to the declining growth in the production of mining and quarry fields, which is the largest contributor to Papua's economy," he added.
He noted that the highest growth was achieved by the electricity and gas procurement field, which is at 8.14 percent; followed by information and communication, which is at 6.92 percent; and water supply, waste management, and waste recycling, which are at 6.77 percent.
Meanwhile, Papua's economy, based on Gross Regional Domestic Product (GRDP) at current prices in the third quarter of 2017 reached Rp51.39 trillion and at constant prices in 2010 reached Rp40.07 trillion.
When viewed from the creation of Papua's quarterly economic growth source in the third quarter of 2017 (q-to-q), mining and quarrying fields have the highest growth source of 17.32 percent, followed by construction at 0.72 percent, and large-retail trade and cars-motorcycles repair by 0.40 percent.
"Without mining and quarrying, Papua's economy in the third quarter of 2017, against the previous quarter (q-to-q), grew by 3.37 percent, slower than the preceding quarter, which grew by 4.96 percent," he revealed.
According to Sapari, the matter is due to the decline in production of food crops, especially rice, which has passed the harvest season in the last quarter. It is also due to the slowing personnel expenditures in this quarter, whereas in the previous quarter, there was a payment of 14th salary.
"In addition, this slowdown is also due to a decrease in production of several processing Industries, especially wood industry, as well as the decline in added value of financial brokerage services," he elaborated.
In the meantime, decline in the economic growth also affected employment condition in Papua.
BPS of Papua Province revealed that over the past one year, the open unemployment rate in Papua has increased from 3.35 percent in August 2016 to 3.62 percent in August 2017.
"Compared to the conditions in February 2017, it declined from 3.96 percent to 3.62 percent," Sapari stated in Jayapura on Tuesday (Nov 7).
He explained that the number of labor force in Papua in August 2017 reached 1,762,481 people, up by 40,679 people compared to August 2016, and the number of workers during that period increased by 14,700 workers compared to February 2017.
"The increase in the number of workers can reduce the unemployment rate if the number of workforce remains; but if the number of the workforce also increases, then the increase in the working population does not necessarily reduce the number of unemployed," he elaborated.
In terms of employment, an increase in the number of workers occurred in the industrial sector (11,946 people) and community services (20,744 people).
"Meanwhile, the agricultural sector, restaurant trade and accommodation services, and other sectors experienced a decline in the number of workers over the past six months. The one that experienced the largest decline is mentioned as other sectors, with a decline of 8,431 workers," he added.
He noted that the employment structure in Papua Province in August 2017 has not changed. The agricultural sector is still the largest contributor to the absorption of labor in Papua.
"The number of workers recorded in this sector (agriculture) in August 2017 is 68.47 percent of the total workforce," Sapari concluded. ***3***(A014/INE)
EDITED BY INE(T.A014/A/BESSR/Suharto) 09-11-2017 22:56: |
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