Papua Public Expenditure Analysis
Papua has abundant natural and fiscal resources but also faces great development challenges. On the one hand, Papua currently has the largest per capita fiscal capacity after West Papua. Papua is rich in natural resources such as non-oil-and-gas mi...
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Format: | Report |
Language: | English en_US |
Published: |
World Bank, Jakarta
2017
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Online Access: | http://documents.worldbank.org/curated/en/540181468044658847/Papua-public-expenditure-analysis http://hdl.handle.net/10986/27234 |
Summary: | Papua has abundant natural and fiscal
resources but also faces great development challenges. On
the one hand, Papua currently has the largest per capita
fiscal capacity after West Papua. Papua is rich in natural
resources such as non-oil-and-gas minerals and forest
products. On the other hand, development challenges in Papua
are significant, including geography, terrain and
demography. In general, Papua is still underdeveloped both
socially and in economic terms compared to other regions in
Indonesia. This underdevelopment is evident in most poverty,
education, health, and infrastructure indicators. The
economy and investment in Papua are dominated by the mining
sector and, in a distant second place, the agricultural
sector. Between 2004 and 2007, the mining sector accounted
for more than 50 percent of the Papua's gross regional
domestic product (GRDP). As a consequence, economic growth
was determined by fluctuations in mineral commodity prices.
The second largest sector is agriculture, which accounts for
about 14-18 percent of GRDP. This sector absorbed the most
workers in Papua province until 2008. Meanwhile, industry
continues to lag and contributed less than 10 percent to
GRDP. The PEA is a part of the PEACH (Public Expenditure
Analysis and Capacity Harmonization) program. This program
is an initiative of the Government of Papua to continuously
improve its public financial management performance.
Consequently, the analysis contained in this report
addresses issues that are the region's main focus.
Today, the Government of Papua is trying actively to achieve
a 'New Papua' through implementing the following
agenda: a) restructuring the local government; b) developing
a prosperous Papua; c) developing a safe and peaceful Papua;
and d) improving and accelerating the development of basic
infrastructure and facilities. |
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