Province

North Maluku

Overview Economy

Maluku – North Maluku

Covering an area of 31,982 square kilometers, and home to a population of 1.3 million people, North Maluku is a province in eastern Indonesia surrounded by seas. To the east is the Halmahera Sea, the Maluku Sea lies to the west, the Pacific Ocean stretches to the north, and the Seram Sea borders to the south. The province is divided into eight districts and two cities.

Historically, North Maluku was formally established on October 4, 1999, through Law No. 46/1999. Previously, the province functioned as a district within Maluku province, adjoining Central Halmahera. At the time of its establishment, Ternate was designated as the provincial capital. This arrangement persisted for 11 years until 2010 when the capital city was relocated to Sofifi, situated on the mainland of Halmahera, the largest island in the Maluku Islands.

The people of North Maluku represent a diverse group with a rich history and culture. The province is home to a range of ethnic groups, each with its own unique culture and language. Among them are the Madole, Pagu, Ternate, and West Makian people.

In terms of religion, Islam dominates North Maluku’s religious landscape, with 74.7 percent of the population adhering to it, followed by a significant Christian population of 24.74 percent. Other religions collectively make up less than 1 percent of the population.

Show more

Economic Description

North Maluku boasts a robust economy, having acquired Rp 48 trillion in Gross Regional Domestic Product (GRDP) as of 2023. The top three contributing sectors are the processing industry, mining, and agriculture. The processing industry leads with Rp 14 trillion, followed by the mining sector at Rp 9 trillion, and the agriculture sector at Rp 4 trillion.

Within the processing industry, the base metal subsector contributes the most with Rp 13 trillion, almost over 90 percent of the entire industry. As of 2023, the processing industry witnessed a 48.12 percent year-on-year increase.

Regarding the mining sector, North Maluku is one of the provinces known for its downstream mineral resources. One mineral resource, nickel, has shown substantial positive effects in terms of its downstream development in the country. With North Maluku’s mining sector ranking among the top contributors to its GRDP, total investments in the province reached US$ 9.8 billion by 2022, with the majority directed towards this sector.

Furthermore, North Maluku’s agricultural sector mainly produces coconuts, cloves, nutmegs, cassava, sweet potatoes, cayenne, and plantains. Out of these commodities, coconuts account for over 60 percent of the total output. As of 2022, approximately 13,525 hectares of land were available for agricultural investment.

Given the vast and diverse sectors in North Maluku, numerous investment potentials abound in the province, ranging from the smelter nickel sulfate sector to resorts in the tourism sector. Additionally, North Maluku is home to a special economic zone (SEZ) on Morotai Island, strategically positioned in the outer zone of the eastern sea.

Show more

Latest News

October 30, 2025

The North Maluku Province economy soared 32.09 percent year-on-year (yoy) in the second quarter (Q2) of 2025, the highest in Indonesia for the period. The highest economic growth rate achieved by its regencies and cities reached 70 percent yoy. North Maluku Governor Sherly Tjoanda Laos stated that the high growth proves the provincial government's seriousness about creating a favorable investment climate so investors could grow their ventures optimally.

"North Maluku has the highest economic growth in Indonesia, and perhaps in the world, though I do not know the exact data [for comparison]. In comparison to the national growth target was 8 percent, [and] the current [national economic growth rate] of only 5 percent, our economic growth in North Maluku Province was 32 percent," Sherly stated at the Landbank Strategic Partnership Forum at Wisma BNI 46 in Jakarta Special Capital Region (DKI) on Oct. 23, 2025.

Based on data from Statistics Indonesia (BPS) as of the end of 2024, Sherly continued, the total value of investments in North Maluku Province reached about Rp 60 trillion. Sherly stated that the North Maluku Provincial Government is currently focusing on improving land utilization to optimize coconut cultivation, a leading commodity in the province.

She added that coconuts and their derived products are in very high demand, including for the fruit itself, coconut milk, and coconut cream. The demand for coconut milk alone reaches 1 million liters per day, and the world is currently experiencing a coconut shortage.

Meanwhile, North Maluku currently produces around 6 million coconuts per day. There are at present two coconut-derived product factories in the province, with two more under construction. Sherly believes that the region still has significant potential for development.

Of the total 273,000 hectares (ha) of Other Use Areas (APL), only 70,000 ha have been utilized for agricultural commoditties. The remaining 220,000 ha of idle land could be mapped and used to grow commodities such as coconuts.

"North Maluku has idle land ready to be optimized for coconut cultivation. In addition, there are corn, cloves, nutmeg, and cocoa. Through a partnership with the Land Bank Agency, legal certainty and land legality is expected be more secure and [confirmed] faster," said Sherly.

"Direct access to strategic areas can also be synchronized with spatial planning according to data from us, the provincial government, and we will provide thorough assistance and services to ensure optimal investment for investors," she continued.

Read more
September 2, 2025
July 16, 2025
June 23, 2025
June 2, 2025
May 7, 2025
April 16, 2025
March 24, 2025
March 13, 2025
Load more