Central Papua's economy contracts 15.44% as Freeport sales plummet

The economy of Central Papua experienced a significant contraction of 15.44% in the second quarter of 2026 compared to the same period last year. The primary driver of this downturn was a drastic drop in sales from PT Freeport Indonesia, a major contributor to the region's revenue.

According to the Central Statistics Agency (BPS) in Nabire, the mining sector remains the backbone of Central Papua's economy, representing 76.51% of its Gross Regional Domestic Product (PDRB). Fluctuations in this sector, particularly concerning PT Freeport's commodity sales, directly impact the region's overall economic growth.

The decline in sales was substantial, with copper sales falling from 443 million pounds in Q2 2025 to 153 million pounds in Q2 2026. Gold sales also saw a significant decrease, dropping from 518,000 ounces to 118,000 ounces during the same period. This sharp reduction in output and sales directly affected the PDRB figures.

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When the mining sector experiences turbulence, the economic growth of Central Papua will automatically fluctuate.

However, the economic picture shows signs of recovery when viewed on a quarterly basis. Central Papua's economy grew by 5.24% from the first to the second quarter of 2026. This growth was supported by an increase in copper sales volume and a rise in the average price of copper, which increased from $5.89 per pound to $6.12 per pound.

Furthermore, the non-mining sectors of Central Papua's economy demonstrated resilience, recording a positive year-on-year growth of 5.45%. BPS Head Dio Ginting emphasized that this growth in non-mining activities, including community businesses, development projects, and government services, reflects the healthy state of the region's real economy.

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This proves that the real business activities of the community, development, and government services are running very well and continue to grow.