October 20, 2025 | 04:33 pm
TEMPO.CO, Jakarta - Indonesian Minister of Home Affairs, Tito Karnavian, has highlighted the low economic growth in several mining-producing regions. This condition is caused by the delay in export activities due to incomplete smelter construction in several areas.
"The regions with the lowest growth are Central Papua. This is because Freeport has problems, such as landslides and a smelter fire, causing a halt in all activities. As a result, exports from Freeport have stopped, even though it significantly contributes to the economic growth in Central Papua," said Tito during the Regional Inflation Control Coordination Meeting for 2025 at the Ministry of Home Affairs office in Central Jakarta on Monday, October 20, 2025. Finance Minister Purbaya Yudhi Sadewa also attended the meeting.
In addition to Central Papua, Tito pointed out the economic decline in West Nusa Tenggara (NTB). He acknowledged the good performance of the NTB Governor, but it was hindered by smelter construction. "There is a mining company called Amman. It was instructed to process and build a smelter, then exports were halted. Because of the export suspension, the economic growth immediately went into negative territory. NTB has never experienced negative growth before," he said.
Tito mentioned that they have already conveyed this issue to the Minister of Energy and Mineral Resources, Bahlil Lahadalia. "We have conveyed this to Pak Bahlil, and whether it is possible to continue exporting while waiting for the completion of the smelter. Because if not, it will have an impact on negative economic growth," he said.
Data from the Ministry of Home Affairs shows several regions experiencing negative economic growth, such as Central Papua at -9.83 percent, NTB at -0.82 percent, and West Papua at -0.23 percent. "These negative figures, Central Papua, West Nusa Tenggara, West Papua, if they go negative, will significantly deviate from the earlier mentioned. This will have an impact on national economic growth," said Tito.
He emphasized that national economic growth is an aggregate of the work of all regions. "We hope that all regions have their respective economic growth above the national level so that they can push for economic growth," said Tito.
Until the third quarter of 2025, the Ministry of Home Affairs recorded the national economic growth at around 5.12 percent. He hopes that the economic growth can reach 6 percent if all regions work to their maximum potential. "If all regions work maximally to maintain economic growth, such as handling inflation, then it can be achieved. Inflation has been under control at 2.65 percent for the past two and a half years," he said.
Tito also urged regions to strengthen public spending and investment to stimulate the economy, especially in mining areas affected by the decline in exports. "We request that the Finance Minister provide guidance to all regional heads to build economic growth," he said.
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