Mining sector still dominates Papua's economy: BI official

Jayapura, Papua (ANTARA News) - The Head Representative of Bank of Indonesia (BI), Joko Supraptiko said on Thursday that Papuas economy is dominated by the mining sector.

"Gross Domestic Product (GDP) in Papua is very dependent on the mining sector, which is operated by PT Freeport Indonesia," Joko added.

He said Papuas GDP during the third quarter of 2015 reflected a 0.59 percent year-on-year (y-o-y) growth.

"Papuas GDP in the third quarter of 2015 only grew by 0.59 percent (y-o-y) after growing at 12.77 percent (y-o-y) in the second quarter.

According to him, based on business views, the fluctuation of Papuas GDP was a result of the mining performance of the province, which accounts for 40 to 60 percent of its GDP. In the third quarter of 2015, mining grew by only 10.79 percent (y-o-y).

"Indeed, mining is the dominant sector in Papua, so inevitably it should be maintained," he said, responding to the debate on the extension of Freeports contract of work, which involves a member of House of Representatives.

So far, PT Freeport Indonesia had conducted two explorations in Papua, first in the Hertzberg mine (1967 to 1988) and second in the Grasberg mine (1988-present), both of which are located in the Tembagapura, Mimika district.

The exploration of land, which the government handed over to Freeport, covers an area of 10,908 hectares for a 30-year long contract, commencing from the first time commercial activity was carried out.

Besides the mining sector, the provincial administration has also developed other economic potential.