DECENTRALIZATION AND WELFARE: EVALUATING THE ECONOMIC PERFORMANCE POST-TERRITORIAL DIVISION IN BOVEN DIGOEL REGENCY, PAPUA PROVINCE, INDONESIA

Abstract

This study assesses the economic performance of Boven Digoel following its territorial expansion and the application of local autonomy policies. The methodological approach involves the analysis of secondary data from diverse sources, including governmental reports, regional economic figures, and pertinent scholarly works. Key indicators such as economic growth and poverty levels are scrutinized. Findings indicate that from 2017 to 2022, Boven Digoel Regency has an average Economic Capacity Index of 1.47. This can be attributed to the prevalent influence of the agricultural sector and the lagging development of other sectors closely tied to community endeavors, like trade. Post-expansion, Boven Digoel has exhibited minimal economic growth in contrast to its progenitor region, contributing insignificantly to the overall GDP. This suggests that regional divisions within Indonesia do not guarantee the emergence of new regions at par with their predecessors. From 2012 to 2022, the average poverty rate in Boven Digoel was 20.45%, lower than in comparison areas but still higher than in the originating region. Notably, poverty rates in Boven Digoel Regency have shown a decline.