PON Blessing, a Papuan Economy will Soar 14% this Year

goodmorningpapua.com – The XX National Sports Week (PON) is expected to boost Papua’s economic growth by 0.7-1.1%. Papua’s economic growth, as a whole, is also expected to accelerate to 14% in 2021. For information, Papua’s gross domestic product (GDP) grew by 13.14% (year on year) in the second quarter of this year.

“The impact will indeed be significant around 0.7-1.1%. That’s an additional growth so that we can hope that by the end of the year it will be beyond 14%,” said Head of Bank Indonesia Representative for Papua Province, Naek Tigor Sinaga, Saturday (9/09/2011). 10).

He explained that the nominal contribution of 0.7-1.1% to GDP during the PON performance is estimated to reach IDR 1.2-1.5 trillion.

“There are 26,000 athletes, officials and executive committees, so it will automatically affect the economy,” he said.

The addition of 0.7-1.1% to economic growth is only a contribution during the implementation of the PON which takes place on October 2-15 this year. Long before the PON fest was held, the biggest sport event in the country had given an injection of Papua’s economic growth from various sectors.

“It is mainly from construction because there is construction of venues and others. It has been since 2016 and the value is almost Rp. 5.2 trillion for the construction of venues,” added Naek Tigor.

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If the construction sector contributed greatly before the implementation of the PON, transportation, food and beverage accommodation, tourism, and trade would be the sectors that would benefit the most during the PON XX. With tens of thousands of athletes and officials, the need for transportation such as cars, buses, or other vehicles increases rapidly during the PON.

“Most of the athletes and officials come to Papua by air transportation, so the growth of the transportation sector is large. All hotels are full, so the accommodation sector is growing rapidly,” added Naek Tigor.

The UMKM sector will also benefit from the PON performance. The UMKM sector became very lively during the PON as the demand for food, souvenirs, souvenirs and beverages increased.

He added that the implementation of the PON also encouraged the Papuan economy in the non-mining and quarrying sector. Based on data from the Central Statistics Agency (BPS) In 2020, the Papuan economy grew 2.32%, most of which was contributed by mining. If the mining and digging category is excluded, the Papuan economy will contract 3.51% in 2020.

“The positive side of this PON is that the non-mining sector can grow around 1-2 percent,” he said.

 Previously, Deputy for Macroeconomic Coordination and Finance at the Coordinating Ministry for Economic Affairs, Iskandar Simorangkir, said that the implementation of PON would improve the economy, especially in the transportation sector, especially air transportation, hotels, restaurants, tourism, and several other real sector activities.

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Thus, the public consumption in these sectors will also grow again, from what previously had decreased due to the COVID-19 pandemic.

In addition to increasing consumption, Iskandar said the production of several goods needed for the Papua PON event will also increase, thereby awakening the industry over there.

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