Papua's Economy Experiences Four Consecutive Contractions

Papua Province's economy, measured by the Gross Regional Domestic Product (GRDP) at constant 2010 prices, recorded a growth of -15.11% in the third quarter of 2019, reaching Rp 36.3 trillion compared to the same quarter of the previous year (YoY). This contraction marks the fourth consecutive quarter since the fourth quarter of 2018. Meanwhile, when measured by GRDP at current prices, it reached Rp 50.34 trillion.

The negative economic growth in Papua was caused by a 38.31% decrease in the mining and quarrying sector's GRDP due to the reduced production of metal ore by PT Freeport. This production decline began in the first quarter of 2019 due to the transition from open-pit mining to underground mining at the Grasberg Block Cave (GBC).

(Read Databoks: [Perekonomian Maluku dan Papua pada Triwulan III 2019 Mengalami Kontraksi 7,43 persen](https://databoks.katadata.co.id/datapublish/2019/11/07/perekonomian-maluku-dan-papua-pada-triwulan-iii-2019-mengalami-kontraksi-743-persen))

For information, the mining and quarrying sector contributes the largest share to Papua's GRDP, reaching 27.41%. As a result, when this sector experiences a significant contraction, it significantly impacts the economy of the province with Jayapura as its capital.

(Read Databoks: [Lebih dari Seperempat Penduduk Papua Miskin](https://databoks.katadata.co.id/datapublish/2019/08/22/lebih-dari-seperempat-penduduk-papua-miskin))