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

September 11, 2024

Marine Affairs and Fisheries Minister Sakti Wahyu Trenggono inaugurated the Saumlaki Integrated Marine Fisheries Center (SKPT) in Tanimbar Islands Regency, Maluku Province on Sep. 5, 2024. The presence of the SKPT is expected to support the growth of Maluku's fisheries industry.

The construction of the fisheries infrastructure on an area of ​​2.12 hectares has been underway since 2022 with a value of around Rp122 billion. Trenggono said that his ministry would also bring in a market to complement SKPT Saumlaki's operation.

"I will present the market, [and investors] will come here soon. That market is important because it will be a problem if (upstream) production runs well later, but the market does not absorb [the products] properly. That is why we will completely present it completely," said Minister Trenggono at SKPT Saumlaki.

Investors, Trenggono added, are interested in building an industry in Tanimbar because of the great potential for fisheries, especially tuna commodities in the waters of Maluku and nearby regions. Moreover, the demand for fishery products in the global market continues to increase.

The annual production of Tanimbar Islands capture fisheries has reached 13,000 MT based on Statistics Indonesia (BPS) data, with the main commodities being tuna, including skipjack tuna, and demersal fishes.

The existence of integrated fisheries facilities at SKPT Saumlaki, such as integrated cold storage, ice factories, fish auction places, and docks that can accommodate large tonnage ships, are also reasons why business actors are interested in investing there.

"Our goal in initiating this is so that the fisheries industry will develop here in the next few years. So do not worry, the [accompanying] market could hopefully be realized soon. The [Marine Affairs and Fisheries Ministry's] Capture Fisheries Director-General will follow up on this. The investment is a combination, from within and outside the country," he explained.

Minister Trenggono also ensured the involvement of the community and local fishermen in supporting the fisheries industry that will run later. The presence of the industry will have an impact on the opening of new jobs, absorption of fishermen's catches, and added value of the resulting fisheries products.

Meanwhile, Japan International Cooperation Agency Chief Representative Sachiko Takeda gave his appreciation for the Marine Affairs and Fisheries Ministry's construction of the Saumlaki SKPT. Sachiko hopes that the construction of the SKPT can help improve the welfare of fishermen as well as provide added value to their fishery products.

"We still have further projects for fishermen together with the Marine Affairs and Fisheries Ministry," he said.

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