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

November 4, 2024

The Maluku Provincial Government is intensifying cooperation with foreign companies and investors to open up investment opportunities in the region.

"In meeting the investment realization target, commitment and seriousness are needed from the leaders of 11 regencies and cities to open up investment opportunities," Acting Maluky Regional Secretary Suryadi Sabirin stated on Sep. 25, 2024.

The Maluku Provincial Government enacts that commitment by welcoming investors or companies from abroad who want to invest in this region. One of them is the Japanese fishing industry, which is now starting to look into Maluku's fisheries products that has achieved progress such as the usage of tag technology and quick response codes.

The two technologies could provide information on the location of the catch, the method of catch, and the type of ship used when going to sea. The application of that technology is being pushed more widely in Maluku. There is also American investor Troy Bradbury, who is currently exploring the potential for superior investment in Maluku Province.

Therefore, Suryadi said that consolidation was needed to achieve the 2024 investment realization targets set by the Investment Ministry/Coordinating Board (BKPM) to each regency and city in Maluku.

"At the beginning of the year the target was Rp2.48 trillion. Then we divided that out to 11 regencies and cities in Maluku. We want to evaluate how much has been realized for the first half of 2024," he explained.

In addition, Suryadi noted an example of an important evaluation for Maluku's regencies and cities is to provide training so that they are more observant for investment opportunities.

"How they [the investors] gets convenience not in the sense of violating the rules, but in being served well and then encouraged by the local community that the investment is for them. Therefore, there could be a transfer of labor, economic growth, and all kinds of CSR (corporate social responsibility) such as roads and education. So, don't hinder investment either," he said.

Suryadi divulged currently there are 200 investment projects, such as shrimp producers, that are in operation within Maluku.

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