Rapid economic growth in Papua is one of the main focus of the Indonesian Government in Papua. The rapid economic growth in Papua is needed to increase and elevate the welfare in Papua. Increasing economic growth in Papua means more funding for the developments and more funds mean more sectors can be improved. Currently, the economic growth in Papua is around 8.76%, increasing 7.97% more from 2015.
The local government of Papua is targeting to increase the economy growth in Papua from 2016 with 13 trillion IDR, to 6.97 percent in 2017, which will become 13.9 trillion IDR. The Bank of Indonesia also predicts that there will be an increase of around 6,1 percent – 6,5 percent for the economy growth in Papua. The economy growth in Papua is important to accelerate the much needed rapid development in Papua. Economy growth in Papua will lead to the increase in the region expenditure by 10.95 percent, from 13.6 trillion IDR in 2016 to 15 trillion IDR in 2017.
“The local revenue will be used to optimize the local expenditure to keep the economic stability and competitiveness of Papua economy,” said the Governor of Papua, explained Lukas Enembe when asked about the economy growth in Papua, cited from AntaraPapua.
The rapid development in Papua needs a lot of funds, by the increase of economy growth in Papua, the government will have additional funds for the development in Papua. However, there will be around 1,1 trillion IDR of deficit in 2017, because of the gap between local expenditure with local revenue. However, the deficit will be covered by the remaining budget from 2016, which is around 650 billion IDR and 540 billion IDR of reserved disbursement funds. Because of the 2016 economy growth in Papua, they can still have a reserved funds that can be used in 2017 to support their development.
“The expenditure will be used in funding the health sector, which are Abepura Hospital, Dok II Jayapura, Abepura Psychiatric Hospital, and also for education sector which is for funding the top schools in five indigenous areas,” said Lukas Enembe when asked about the allocation of funds, as cited from wartaplus.
It is hoped that the economy growth in Papua will bring more benefits and welfare for the Papuan people. If the economy is growing as planned, the development will rise drastically and Papua will soon develop faster than other regions in Indonesia.