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.

Show more

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.

Show more

Latest News

February 19, 2025

The Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) is targeting buyers of liquefied natural gas (LNG) from the Abadi Field project in the Masela Block to be obtained this year.

SKK Migas Head Djoko Siswanto said that the front-end project engineering, procurement, and construction (FPCI) tender for the Masela Block has been carried out to accelerate the final investment decision (FID) process on the giant natural gas (natgas) field in Tanimbar Islands Regency, Maluku Province.

"It's ongoing (the FPCI tender). Basically, it is hoped that there will be off-takers for natgas this year, and the FID can be carried out once they are available," said Djoko when met at the Energy and Mineral Resources (EDSM) Ministry's office on Feb. 14, 2025.

To that end, he encouraged the memorandum of understanding (MoU) that had been signed between INPEX Corporation and PT Pupuk Indonesia (Persero) in 2020 to continue to the head of agreement (HoA) phase.

"I have asked [for the MoU] to at least enter the HoA phase as the fertilizer state-owned enterprise (SOE)'s has requested for an allocation from Masela [Block] for its fertilizer factory," said Djoko.

Other natgas working areas are also being encouraged to find offtakers as soon as possible so that their development could be carried out quickly

"INPEXmust immediately market its natgas, as does Eni in Geng North and other blocks. [Meanwhile,] Mubadala Energy, which managed an Andaman working area, is marketing its natgas," said Djoko.

The signing of the MoU between INPEX and Pupuk Indonesia was carried out in February 2020. INPEX is also reported to have signed an MoU with PT PLN. The slow progress of Masela Block's development has led to it becoming a special concern of ESDM Minister Bahlil Lahadalia. He even reportedly sent a first warning letter to INPEX, the block's operator, due to the issue.

"Well, I have made a first warning letter. If the second [warning letter] can no longer be done, I will revoke it (INPEX's permits). That could become big, and it will definitely be a sensation. I don't need to say what company it is. Let God, me, and the company know," said Bahlil.

Masela Block's Abadi Field is estimated to have a peak production of 9.5 million tons of LNG per year (mtpa), 150 millions of standard cubic feet per day) MMSCFD of pipeline gas, and 35,000 barrels of condensate per day (bcpd).

Currently, the participating interest (PI) holder in the Masela Block is Inpex Masela Limited with a 65 percent stake, while the remaining 35 percent will be divided between Pertamina and Petroliam Nasional Berhad (Petronas) with a target of 20 percent and 15 percent, respectively.

Indonesia is predicted to be ready to become an LNG producing giant in Southeast Asia in line with the potential for an additional 40 billion cubic meters (bcm) of resources by 2030. BMI Research, a subsidiary of Fitch Solutions and part of Fitch Group, stated that Indonesia is rich in greenfield gas projects that will increase the supply of raw gas for LNG production throughout 2024-2030.

The Ubadari enhanced gas recovery (EGR) gas project is the most significant among these greenfield projects, and it is estimated to support LNG production from the Tangguh project. Indonesia's total LNG production capacity could increase to 48.9 mtpa by the early 2030s if the Abadi LNG project or the Masela Block is realized.  Indonesia currently has a combined LNG production capacity of 36.2 mtpa, including Bontang, Donggi Senoro, Tangguh, and small modular plants, according to BMI

Meanwhile, the 2 mtpa Sengkang LNG project is still under construction, with completion potentially delayed until 2025. Genting Berhad is currently building Indonesia’s first 1.2 mtpa floating LNG plant in Bintuni Bay, West Papua. Feed gas for LNG production will be supplied from the Asap, Kido and Merah gas fields.

Genting Berhad has also agreed with the Indonesian government to supply 230 mmscfd of feed gas for LNG production over 18 years, and an additional 101 MMSCFD for a planned ammonia and urea plant in West Papua. The LNG project is expected to start operating in 2028.

“We estimate Indonesia’s total LNG production capacity will increase to 39.4 mtpa by 2028 if the two projects start operating on schedule. The Indonesian government has approved the PoD (Plan of Development) for the 9.5 mtpa Abadi [Masela] LNG project. The project’s investors, including INPEX and Petronas, have yet to announce their FID,” BMI wrote.

Read more
February 4, 2025
January 12, 2025
December 7, 2024
December 5, 2024
November 4, 2024
October 1, 2024
September 11, 2024
August 20, 2024
Load more