By Ben Otto 

JAKARTA, Indonesia--President Joko Widodo is trying to shake off early political setbacks and press ahead with his pledge to bring infrastructure and development to the farthest corners of his sprawling archipelago nation.

In particular, remote and impoverished Papua has caught Mr. Widodo's attention.

For the second time since taking charge of Southeast Asia's largest economy last year, Mr. Widodo this month visited the far eastern region, more than 3,000 kilometers (1,900 miles) from the capital, Jakarta, to suggest the restive area is turning a page on history, poverty and a tenuous connection to the rest of the country.

Papua, a sparsely populated territory of port towns, highland villages, natural forest and the highest mountains in Oceania, lies closer to Australia than it does to the power centers of western Indonesia. The region has long been home to multibillion-dollar mining and petroleum projects by Arizona-based Freeport-McMoRan Inc. and BP PLC, but remains one of the poorest areas in Indonesia.

But an undersea fiber optic cable is slowly working its way to a frontier region now served by satellites, and Mr. Widodo said he would speed up construction of a 4,000-kilometer highway running across what amounts to a fifth of all land area in Indonesia, a vast nation of 18,000 islands strategically straddling the Indian and Pacific Oceans and some of the world's busiest shipping lanes. He visited the construction site of a stadium that will allow Papua to host Indonesia's national games for the first time.

Though those projects were in train well before Mr. Widodo arrived in office seven months ago, he has enthusiastically adopted them as he tries to breathe new life into infrastructure projects and widen economic development beyond a few industrialized hubs in the country's west.

Mr. Widodo also freed five political prisoners from among dozens jailed for their roles in a secessionist movement that has long dogged Papua and underpinned a large role for the military in governing it. In most other regions in Indonesia, the military's role shrank following the ouster of authoritarian ruler Suharto in 1998.

Overall, investment in Papua is minimal, in large part because poor infrastructure blocks companies from feasibly tapping into the region's enormous natural resources potential. Last year, non-oil-and-gas investment in Papua totaled about $1.4 billion, less than 4% of the country's total investment. Almost all of that was foreign investment, with Freeport alone pouring nearly $1 billion into its mining operations.

"The industry has been held back more by high costs than by security concerns," one foreign oil-and-gas consultant said. "Projects there need frontier-type fiscal terms to work."

The territory was ruled by the Dutch until the 1960s, then joined Indonesia after a controversial, U.N.-backed referendum in 1969. An enduring secessionist movement known as the Free Papua Movement (OPM) has led to decades of virtual military rule. While the rebellion has long faded, tensions with security forces remain.

Analysts said that freeing the prisoners was an early gesture to suggest Mr. Widodo's administration would go further than past governments in bringing the 3.6 million Papua residents, about half of whom are of Melanesian ethnicity, a distinct minority in Indonesian, further into the fold of a nation of 250 million people.

"Papua needs, more than anything, political attention from Jakarta and an opening to the world, if Papuans are ever to feel at home in this country," said Paul Rowland, a Jakarta-based political analyst.

Part of that opening entails building up the infrastructure that will spur on new investment not just in Papua, but across eastern Indonesia. On his way to Papua last week, Mr. Widodo stopped off in the Maluku island chain to remind people of his plans to renovate a large seaport there, and once in Papua, drew attention to a new port he'd build in the territory's far west.

Both are emblematic of Mr. Widodo's belief that maritime development in the expansive archipelago country will be key to boosting exports and lowering crippling logistics costs to spread the wealth of Indonesia--a nearly $900 billion economy--more evenly. The president is fond of comparing the price differences of cement in Java and Papua--$6 a bag versus $150, he says--to make the point.

Papua is home to Indonesia's largest forests, and by some estimates half of all its copper. Freeport's Grasberg mine in the Papuan highlands is the largest in Indonesia, and the government's single largest source of tax revenue. BP is considering a $12 billion plan to expand its natural gas operations.

Mr. Widodo still faces questions about project execution that have plagued the early-going of his administration. Investment spending, and efforts to unstick several major projects, are behind schedule. Already there's talk of a cabinet reshuffle.

In Papua, there's "no coherent strategy on this, as everything else," said Sidney Jones, head of the Jakarta-based Institute for Policy Analysis of Conflict. Mr. Widodo's moves were "nice gestures, but who's in charge?"

Write to Ben Otto at ben.otto@wsj.com

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