Ministry of Finance’s Note: Bali and West Papua’s Economic Growth Lagged in 2021


National economic growth increased in 2021 compared to 2020. However, only Bali and West Papua recorded that their economy did not experience a positive increase.

Nationally, economic growth in 2021 will be at 3.69 percent or growing from 2020 which is still negative 2.07 percent

This was conveyed by the Director-General of Fiscal Balance of the Ministry of Finance, Astera Primanto Bhakti. He explained that in 2021 almost all provinces managed to record positive economic growth. This will encourage national economic growth in 2021 to 3.69 percent.

However, the two regions did not experience positive economic growth. Bali and West Papua are listed as provinces that will still record negative economic growth in 2021, which are –2.47 percent and –0.51 percent, respectively. Even so, there was growth from the 2020 position where the contraction was deeper, namely Bali –9.31 percent and West Papua –0.77 percent.

“Bali and West Papua still have negative growth in 2021, other provinces are already positive,” Primanto said on Tuesday (8/2/2022).

He confirmed that national economic growth had indeed increased in 2021 compared to the initial year of the pandemic, in 2021. He asked that this growth momentum be maintained so that in the first quarter of 2022 the national economy would still record a positive increase.

Quoted from data from the Central Statistics Agency (BPS), the largest recovery occurred in Papua Province with an increase of 12.79 percent, namely when 2020 economic growth was 2.32 percent and in 2021 it was 15.11 percent. Then, North Maluku experienced an increase of 11.48 percent, namely in 2020 it recorded economic growth of 4.92 percent, and in 2021 its growth reached 16.4 percent.

Regarding the rapid growth in Maluku, Head of BPS Margo Yuwono explained that this was caused by an increase in metal ore mining activities, especially the production of nickel ore, gold ore, and silver ore.

Furthermore, regarding the increasing economic growth in Papua, it also increased due to an increase in metal ore mining activities, especially copper and gold ore, as well as increased construction to support the implementation of the 20th PON in Papua.
Unfortunately, the increase in economic growth in the two regions did not provide a large contribution to GDP, which was only 2.49 percent nationally.