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

April 9, 2025

Whilst visiting Ambon City, Maluku Province on Apr. 5, 2025, Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia ordered electricity state-owned enterprise (SOE) PT Perusahaan Listrik Negara (PLN) to swiftly build 40 megawatts (MW) of geothermal power plant (GTPP) capacity in Maluku.

Bahlil said that Maluku Province has a potential energy output of 40 MW from geothermal energy that needs to be developed immediately. He emphasized that the GTPP project has been included in the draft of PT PLN's 2025-2034 Electricity Supply Business Plan (RUPTL).

"No longer dependent on diesel. No longer dependent on coal," said Bahlil.

The GTPP projects in Maluku in question include the 20 MW Wapsalit GTPP on Buru Island and the 2x10 MW Tulehu GTPP on Ambon Island. The Wapsalit GTPP is currently still in the exploration stage by private developers, with 2028 as its commercial operation date (COD). Meanwhile, the Tulehu GTPP is currently in the procurement stage by PT PLN and is targeted to COD in 2031.

In addition, there is geothermal energy potential within Seram Island, namely in Banda Baru Village, Amahai District, Central Maluku Regency, which could be developed into a 25 MW GTPP according to the results of a survey by the ESDM Ministry's Geological Agency.

Currently, the electricity system in Maluku is still very dependent on fossil fuel-based power plants. Based on 2024 data, the total power generation capacity in the province reaches 409 MW. Of this amount, around 99 percent or 406 MW still comes from fossil fuel sources. Diesel power plants are the largest contributors of capacity with 249 MW, or around 61 percent of the total capacity, followed by combined cycle gas turbine (CCGT) power plants with 157 MW or 38 percent.

Meanwhile, the contribution of new and renewable energy (NRE) is still very limited at only around 3 MW, or less than 1 percent. That consists of solar power plants (SPP) at 3 MW and micro-hydro power plants at 0.1 MW.

With the inclusion of the GTPP project in the PT PLN's RUPTL, the Indonesian government aims to significantly boost the use of NRE and reduce fossil fuel dominance in Maluku.

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