Papua economy grows 3.40 percent

MACROECONOMICS - JAYAPURA. 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 recently 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.