Freeport Activities Drive Papua's Economic Growth

16 January 2022

Papua became the province with the highest economic growth rate at the national level in the third quarter of 2021, which is 14.54%. This figure is far above the national economic growth rate in the third quarter of 2021 which was only 3.51%. Mining activities carried out by PT Freeport Indonesia (PTFI) in Mimika Regency are one of the main contributors to the high rate of economic growth in Papua during that period.

Data from the Central Statistics Agency (BPS) states that the mining and quarrying sector is the largest contributor to Papua's high economic growth rate in the third quarter of 2021 with a growth of 37.56% (year-on-year/YoY). Papua's high economic growth rate in the third quarter of 2021 cannot be separated from the contribution of the mining and quarrying sector, including by PT Freeport Indonesia, as one of the vital sectors capable of moving the Papuan economy in the midst of all the challenges of the pandemic, said Head of BPS Papua Province Adriana Helena Robaha in a statement quoted on Wednesday, 15th December 2021.

According to him, without the support of the mining and quarrying sector, Papua's gross regional domestic product (PDRB) at constant prices (ADHK) only grew 2.42% in the third quarter of 2021. PTFI's high contribution to the achievement of Papua's economic growth rate is directly proportional to the increase in PTFI's production during the third quarter of 2021.

President Director of PTFI, Tony Wenas said that PTFI's copper ore production during July-September 2021 reached 956 million tons, an increase of 76.05% compared to the same period the previous year (YoY). Meanwhile, PTFI's gold production figure reached 968,000 ounces, an increase of 67.76% (YoY). "PT Freeport Indonesia is grateful that our increased production has helped boost significant economic growth for Papua in the third quarter of 2021," he said. The increase in PTFI's production also goes hand in hand with PTFI's efforts to improve the welfare of the communities around its operational areas, which indirectly contributes to Papua's high economic growth rate.

In the midst of all the Covid-19 pandemic impacts, PT Freeport Indonesia together with the Mimika Regency Government, Timika Diocese, the Amungme and Kamoro Community Empowerment Foundation (YPMAK), and various other partners continue to strive to maintain the economic resilience of the community through various programs of direct assistance, development, and community capacity building for entrepreneurship.

The Mimika Regency Government appreciates PTFI's initiative to develop Papua, especially Mimika. Head of the Regional Planning and Development Agency (Bappeda) of Mimika Regency, Yohana Paliling said that PT Freeport Indonesia's development was not only realized through Papua's high economic growth, but also reflected in the improvement in people's welfare. PTFI stated that it would continue to realize its commitment to contribute to Papua by promoting collaboration and synergy with the government and other stakeholders to support the government in its sustainable development goals (SDGs).

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