Pour the dry rice into a pot or bowl and cover with 2 inches of water. Soak for at least 15 minutes (overnight if possible!), then drain the water and set rice aside until ready to use.
Plug in your Instant Pot, press the Sauté button, and pour in the avocado oil. Allow the Instant Pot to heat up for a few minutes.
Sprinkle the chicken with paprika, garlic powder, and sea salt and set on a plate while the Instant Pot is heating up.
Place the chicken in the Instant Pot skin-side down and sear for 4 to 5 minutes, or until the skin is golden-brown and crispy. Flip chicken to the other side and brown for another 4 to 5 minutes. (note: depending on the size of your Instant Pot, you may need to brown the chicken in two batches. Remove the browned chicken from the pressure cooker and place it on a plate.
Add the butter (or ghee) as well as the chopped onion to the Instant Pot. Sauté, stirring occasionally, until it begins to turn translucent, about 3 to 5 minutes. Add the garlic, white rice, and chili powder and continue sautéing, stirring constantly, for 2 to 3 minutes.
Stir in the dried oregano, chicken broth, tomato paste, and salsa until well-combined. Place the chicken back into the Instant Pot. Secure the lid on the Instant Pot, select Manual/Pressure Cook, and set the time for 12 minutes. Leave the pressure release valve closed and be sure the pressure cooker is set to the default High setting. Allow the pressure cooker to run its course then let it naturally release for 10 minutes. Use the quick release valve to let out the remaining pressure.
Open the lid and fluff the rice with a fork. Either remove the skin on the chicken and serve immediately (the skin will be floppy), or follow the instructions below for crispy chicken skin.