Jakarta – AswinNews.com —
Investment plays a strategic role in driving sustainable economic development in Papua. As a region endowed with abundant natural resources, vast geographic potential, and unique social and cultural characteristics,
Papua requires well-directed, well-planned, and optimally managed investment to deliver tangible benefits for community welfare.
This was conveyed by economist Dr. Yuliana J. Waromi, SE., M.Si, in her economic perspective on the urgency of investment as an instrument to strengthen Regional Original Revenue (PAD) while expanding economic opportunities for the people of Papua.
According to her, investment should not be viewed merely as capital inflows, but as a tool for economic and social development that can enhance regional fiscal independence and create inclusive economic spaces for local communities, particularly Indigenous Papuans (OAP).
Investment as the Foundation of Regional Fiscal Independence
The growth of investment—both Domestic Investment (PMDN) and Foreign Direct Investment (PMA)—contributes directly to increasing PAD through various sources, including local taxes, retributions, profit-sharing schemes, and regional equity participation in strategic enterprises.
“When investment grows, economic activity increases, business sectors expand, and regional fiscal revenues strengthen. Strong PAD provides greater fiscal space for local governments to finance infrastructure, education, healthcare, and improvements in public services,” Dr. Yuliana explained.
Thus, investment becomes a crucial foundation for achieving fiscal independence in Papua and reducing dependence on central government transfers.
Expanding Economic Opportunities for Papuan Communities
Furthermore, Dr. Yuliana emphasized that investment opens broad economic opportunities for Papuan communities.
Investment in strategic sectors such as agriculture, plantations, fisheries, tourism, creative industries, services, energy, and mining will drive job creation, enhance local workforce skills, and stimulate the growth of MSMEs.
“Papuan communities must not merely become spectators, but must serve as the main actors in the regional economic value chain,” she stressed.
Inclusive investment will generate multiplier effects, encourage local economic growth, increase household income, and strengthen the regional economic structure in a sustainable manner
Indicators of Investment Impact on Papua’s Development
To ensure that investment delivers real benefits, measurable indicators of success are required, including:
Increased Regional Original Revenue (PAD) through local taxes, retributions, and profit sharing;
Absorption of local labor and improved productivity;
Growth and sustainability of MSMEs as downstream impacts of investment;
Improved quality of economic and social infrastructure;
Enhanced community welfare, reflected in per capita income growth, poverty reduction, and improvements in the Human Development Index (HDI).
Investment Outputs and Targets in Papua
Based on these indicators, investment in Papua is expected to generate tangible outputs such as increased Gross Regional Domestic Product (GRDP), stable regional economic growth, and strengthened leading sectors.
Specifically, investment outputs include increased realization of PMDN and PMA, development of physical and digital infrastructure, strengthening of regional leading sectors, and improved regional financial performance and fiscal efficiency.
The primary target of investment in Papua is not merely economic growth, but comprehensive and equitable improvements in community welfare, with a focus on empowering local and indigenous communities as key actors in development.
The Urgency of Investment for Papua and Eastern Indonesia
Dr. Yuliana emphasized that investment in Papua plays a crucial role in the development of Eastern Indonesia, both as a driver of economic growth and as an instrument for equitable welfare distribution.
During the 2025–2026 period, investment priorities include the development of new economic zones, downstream processing of leading sectors, basic infrastructure development, and strengthening financial inclusion and literacy.
Moreover, the growth of capital market investors in Papua is projected to reach 25 percent by 2026.
“With guarantees of security, legal certainty, and ease of licensing, investment in Papua is expected to build a sustainable long-term economic foundation, aligned with environmental preservation and Papuan socio-cultural values,” she concluded.
Source: Dr. Yuliana J. Waromi, SE., M.Si.
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