In many developing countries, various development models have been used, but the results are far from expectations. This happens because this ideology only focuses on equitable development by focusing only on economic growth factors. Even so, we can assume developmental deviations are common because when applied in the field, we cannot study them completely thoroughly. However, based on the conditions above, we can take the most optimal approach to formulate an optimal mutually dependent and beneficial relationship between the community and the government as stipulated in legal policy. Therefore, this paper examines how the political economy and the role of the state shape the development of Papua in Special Autonomy System. With FGD data and research from the literature, we use a descriptive-qualitative strategy. According to the findings of the study, the background of economic exploitation in Papua and the sustainability of nature as a production space has a paradoxical relationship, where the result of increasing the economic value of mining activities is conducted by PT. Freeport which is inversely proportional to the loss of green open space. This results in damage to living ecosystems. As a result, the sustainability of the Papuan people's livelihood in the future is threatened. Based on this, the author provides the results of his study as a solution for government policy makers to provide recommendations so that the government prioritizes human-centered development strategies. This study concludes that "capacity building" is needed by humans in order to become the subject of development. With this framework in mind, the people of Papua can optimize development in their area more effectively because the process is carried out through social development that emphasizes education, knowledge, and skills.