Province

Maluku

Overview Economy

Maluku – Maluku

Maluku is a provincial territory encompassing the southern region of the Maluku Islands in Indonesia. It covers an area of 46,150 square kilometers, with only about 7.6 percent of the province's surface being land, while the remaining 92.4 percent consists of sea. To the north, Maluku is bordered by the Seram Sea, while the Indian Ocean and Arafura Sea lie to the south, Papua to the east, and Sulawesi to the west. Ambon, the largest city in the province, also serves as its capital and administrative center. Maluku’s administrative area is divided into nine districts and two cities.

Before its establishment as a separate province in 1999, the Maluku Islands constituted a unified province within Indonesia. However, a division occurred that year, separating the northern region, including the North Maluku regency, Central Halmahera regency, and the city of Ternate, to establish the distinct province of North Maluku

The province boasts a population of 1.9 million people and presents a diverse community. The majority of the population consists of indigenous Maluku locals from various tribes such as Alifuru, Ambon, Buru, Kei, and Tanimbar. Maluku’s religious landscape is dominated by Muslims at 52.70 percent of the population, followed by Christians at 39.58 percent, and Catholics at 6.87 percent. Other religions make up less than 1 percent of the population.

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Economic Description

As of the fourth quarter (Q4) of 2023, Maluku’s economy thrived with Rp 8 trillion in Gross Domestic Regional Product (GRDP). The province’s economic landscape is primarily driven by the agriculture and fisheries sector, which contributed Rp 2 trillion to the GRDP. Transportation also plays a significant role in the region's leading sectors, with a contribution of Rp 403 billion.

Additionally, apart from agriculture, fisheries, and transportation, two other significant contributors to Maluku’s Q4 GRDP are the government administration, contributing Rp 1.8 trillion, and the wholesale and retail trade sector, including car and motorcycle repairs, which contributed Rp 1.2 trillion.

The province’s agriculture sector is led by the production of coconuts at 107,776 tonnes, followed by cloves at 21,435 tonnes, and cocoa at 8,287 tonnes. Meanwhile, Maluku’s fisheries sector is most well-known for its catch in tuna and skipjack, with capture fisheries contributing around 52,865 tonnes of tuna and 38,759 tonnes of skipjack as of 2022. Additionally, there is significant market potential for grouper and shrimp cultivation, seaweed cultivation, the seaweed processing industry, as well as the preserving and processing industry for tuna and skipjack fishery products.

Regarding the transportation sector, there is a market potential for sea, air, and land transport. As Maluku is an archipelago with 1,340 islands, air transport activity is increasing along with the province’s economic activity. Currently, Maluku boasts 64 ports; however, a strategic expansion plan is necessary to optimize its maritime capabilities.

Furthermore, Maluku presents several investment opportunities focusing on tourism such as the Rhun Island Breda Pala Resort, and in the agro-industry such as integrated capture fisheries and processing. Additionally, the province has several national strategic projects (PSN), including the Ambon New Port, and the Way Apu Dam.

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Latest News

January 12, 2025

Investment and Downstream Minister/Investment Coordinating Board (BKPM) Head Rosan P. Roeslani revealed that Indonesian and Chinese entrepreneurs will jointly invest capital to build an integrated fisheries system in Maluku and Papua. He reported the commitment for the US$460 million joint venture received from Chinese company Zhuhai Hongwan Ocean Fisheries to President Prabowo Subianto at the State Palace in Jakarta on Jan. 2, 2025.

"The investment came in from the four [Chinese companies] is in the fiberglass, PET (polyethylene terephthalate) resin, solar panel sector, and fisheries sectors to build an integrated system for fisheries in the Maluku and Papua regions through a joint venture between said companies with Indonesian ones," Rosan revealed during a press conference at the Presidential Palace Complex in Jakarta after he met President Prabowo Subianto.

The minister visited China in mid-December 2024 as part of a working visit to attract investment from the country to Indonesia. From his visit, Rosan received an investment commitment worth US$7.46 billion from said four companies. The three other companies committed to investing in Indonesia include the Hongshi Holding Group Co., Ltd (Hongshi Group); China Jushi Co., Ltd (Jushi Group); and Zhejiang Zhink Group Co., Ltd. (Zhink Group) subsidiary Wankai New Materials Co., Ltd.

Hongshi Group will invest for the development of a US$5 billion industrial park that will produce raw materials for solar panels, batteries, and their components, as well as for a 2 gigawatt (GW) capacity coal-fired power plant (CFPP). The investment will be disbursed in multiple stages.

Fiberglass producer Jushi Group is committed to disbursing US$1 billion for the initial stage of its investment. The company said that there was an opportunity for increasing demand for fiberglass as an alternative for roofing, in line with the Indonesian government's program to build more housing. Jushi Group also said that it was interested in investing in other sectors, such as agriculture and new and renewable energy (NRE).

Wankai New Materials has committed to investing US$1 billion in the petrochemical sector, particularly PET resin production. The investment is planned to be disbursed in three stages.

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