West Papua's Economy Contracts 1.76% in Q3 2021 Due to Slump in Mining Sector

Based on data from the Central Statistics Agency (BPS), the economy of West Papua, measured by Gross Regional Domestic Product (GRDP) at current prices, reached Rp 21.07 trillion in the third quarter of 2021.

However, based on the 2010 constant price GRDP, West Papua's economy contracted by 1.76%, reaching Rp 15.11 trillion in the third quarter of 2021 compared to the third quarter of 2020 (year-on-year/yoy). This marks the second consecutive quarter of negative economic growth in West Papua this year.

Several sectors experienced slowing growth, contributing to the contraction. The manufacturing industry contracted by 9.79% (yoy), and the mining and quarrying sector saw negative growth of 5.1% (yoy) during the July-September 2021 period.

For context, the mining and quarrying sector contributes 17.66% to West Papua's GRDP, while the manufacturing industry contributes 24.82%.

The slump in the mining sector was a major driver of West Papua's economic contraction in the third quarter. According to the Ministry of Energy and Mineral Resources (ESDM), oil and gas mining production in the province contracted by 6.37% (yoy).

From the expenditure side, the contraction of government consumption expenditure by 7.75% (yoy), gross fixed capital formation (GFCF) by 11.63% (yoy), and exports by 9.33% (yoy) resulted in another period of negative GRDP growth for West Papua in the third quarter of 2021.