The rate reflects an improvement compared to the first quarter of 2022, when the province’s economy contracted 1.01 percent yoy, acting head of West Papua BPS, Johannis Lekatompessy, said in Manokwari, West Papua, on Friday.
The gross regional domestic product (GRDP) on current prices was recorded at Rp23.92 trillion (US$1.6 billion) and on constant price at Rp16.028 trillion (US$1.1 billion), he informed.
“On a quarterly basis, West Papua’s economy grew 1.48 percent compared to the fourth quarter of 2022, when (quarter-on-quarter growth) was (recorded at) 1.04 percent," Lekatompessy added.
He said that the GRDP was supported by the growth of several industries, including process manufacturing (8.90 percent yoy); food, drinks, and accommodation (8.89 percent yoy); other services (8.62 percent yoy); mining (6.73 percent yoy); and trade (6.01 percent).
The industries further comprised water supply (5.68 percent yoy), information and communication (5.41 percent yoy), electricity and gas (5.16 percent yoy), company services (5.15 percent yoy); government administration (4.54 percent yoy), and others, he added.
"There were two types of businesses which experienced a contraction, those being construction with 11.43 percent (yoy) and agriculture with 7.34 percent," he informed.
There were three industries that contributed significantly to the region's GRDP: manufacturing industry (29.56 percent), mining (18.98 percent), and construction (11.71 percent), he elaborated.
However, the conclusion of the LNG Tangguh Train 3 project in Teluk Bintuni district led to a contraction in the performance of the construction business during the first quarter of 2023, he said.
Meanwhile, the processing manufacturing industry saw some positive growth owing to an increase in Tangguh LNG production, which, in turn, also promoted better work performance in the mining industry, he added.
"Throughout the first quarter of 2023, the processing industry became the source of highest growth, as much as 2.79 percent (yoy)," he informed.
In terms of output, the GRDP was supported by the development of goods and services exports, which were recorded at 90.65 percent owing to huge international demand for oil and gas products, he said.
Exports of goods and services became the source of the highest growth in terms of output, which contributed to the total exports of West Papua in the first quarter, Lekatompessy highlighted.
Government consumption—using both the state and the regional budget—also increased to 3.67 percent yoy, becoming one of the drivers that improved the economy after the pandemic, he informed.
"So was household consumption, which grew 2.69 percent yoy," he further added.
Papua province dominated the share of GRDP in Maluku and Papua areas, with contribution capped at 53.17 percent, followed by West Papua with 19.48 percent, North Maluku with 16.20 percent, and Maluku with 11.15 percent, he said.
However, the highest economic growth was recorded in North Maluku at 16.50 percent, followed by Maluku at 5.12 percent yoy, West Papua at 3.13 percent yoy, and Papua at -2.39 percent yoy, he added.
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Translator: Fransiskus Salu W, Mecca Yumna
Editor: Sri Haryati
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