ANALYSIS OF THE METAL MINERAL MINING SECTOR AND ITS FLUENCE ON THE ECONOMY IN PAPUA PROVINCE USING INPUT OUTPUT APPROACH

• Main Author: Agustino, Yugo
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/75341
• Institution: Institut Teknologi Bandung

Papua Province has a potential in metallic mineral mining that serves as a pillar of Indonesia's economy. The mining sector, particularly copper and gold, contributes significantly to Papa Province's Gross Regional Domestic Product (PDRB). In 2022, the Indonesian Parliament discussed the formation of three new provinces in Papa to improve the welfare of indigenous Papuans, especially in remote areas. This research utilizes Input-Output Tables and Ordinary Least Squares to analyze the impact of the mining sector on the economy and its linkages to other sectors in Papa Province. The research findings show that the mining sector has a positive and significant influence on Papa's economic growth. However, its linkages with other sectors need to be strengthened The formation of three new provinces is expected to maximize the potential of each province's flagship sectors to achieve more equitable economic growth. The Papa Pegunungan province focuses on agricultural and forestry resources, Papa Selatan on agriculture, and Papa Tengah on the mining sector. Downstreaming mining and sustainable utilization of natural resources should be prioritized to increase added value, allowing other sectors to benefit from these natural resources. The quality of mining governance and export policies must also be enhanced. Emphasizing the domestic utilization of mining products can increase added value in the supply chain and have a positive impact on other sectors. Managing dependence on commodity exports effectively is also crucial to mitigate the impact of price fluctuations on Papa's economy. The conclusion of this research is that the metallic mineral mining sector plays a vital role in the economic growth of Papa Province. The formation of new provinces presents an opportunity to maximize the potential of each region's flagship sectors. Challenges in improving the linkages between the mining sector and other sectors should be overcome through wise strategies and policies that support sustainable and equitable development.