PapuaAround.com – The remarkable economic growth in the regions of Maluku and Papua in the first quarter of 2024 has been the primary focus, showcasing the incredible potential of these two areas. However, the still-low level of consumer spending highlights an important concern that requires serious attention from the government.
According to data released by the Central Statistics Agency (BPS), economic growth in Maluku and Papua reached its highest peak at 12.15% in the first quarter of 2024. This figure significantly surpasses the national average of 5.11%. However, Dendi Ramdani, Head of the Industry and Regional Research Department at Bank Mandiri, pointed out that the level of consumer spending in these regions remains relatively low.
During a press conference on Monday, Dendi Ramdani explained that despite the economic growth in North Maluku and Papua being driven by the mining and processing sectors, the consumer spending levels do not align with the impressive economic growth. “Consumer spending in both provinces is still relatively low. For example, in North Maluku, consumer spending grew by 4.12% while its Gross Regional Domestic Product (GRDP) grew by 11.8%. In Papua, consumer spending grew by 4.3% despite economic growth of 17.49%,” Dendi stated.
This explanation serves as the basis for the call that high growth must be accompanied by an increase in the purchasing power of the people. Dendi emphasized that this phenomenon poses a significant challenge for the government in maximizing the positive impact of the mining sector on the overall welfare of the society.
In response, Acting Head of BPS, Amalia Adininggar Widyasanti, affirmed that the double-digit economic growth in Maluku and Papua is indeed driven by mining and excavation activities. However, this must be accompanied by policies aimed at significantly increasing consumer spending.
Similar challenges are also faced by other regions in Indonesia. While economic growth in Sulawesi, Kalimantan, Bali-Nusa Tenggara, Java, and Sumatra has also increased, there still exists a disparity between economic growth and consumer spending in some areas.
In addressing these challenges, the government is expected to take strategic steps to ensure that rapid growth is accompanied by an equitable increase in welfare and purchasing power of the people. This is key to inclusive and sustainable development across all regions of Indonesia.
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Source: CNBC.