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.

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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.

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Latest News

January 14, 2025

North Maluku Province Public Works and Public Housing (PUPR) Office Head Sofyan Kamarulah revealed on Dec. 31, 2024, that the North Maluku PUPR Office will manage Rp64 billion in Special Allocation Fund (DAK) for 2025. The fund will be used to build road and irrigation infrastructure in several strategic areas in North Maluku, including the regencies of South Halmahera, West Halmahera, and Morotai Island.

"For road infrastructure, construction will be carried out in South Halmahera, namely the Saketa-Dahepodo (road) with a total budget of Rp25 billion, [as well as the] Laiwui-Jiko-Tamo and Anggai road infrastructure worth Rp18 billion," he explained.

Sofyan added that the construction of irrigation infrastructure will be carried out in two locations, namely the Goal and Talaga villages in West Halmahera Regency as well as Aha Village in Morotai Island Regency, with a total budget of more than Rp19 billion.

"[Construction of] irrigation in Goal Village [will cost] more than Rp5 billion. [The construction] in Talaga [Village will cost] more than Rp4 billion, while [the construction] in Aha Village, Morotai Island [will cost] more than Rp8 billion," he divulged.


Sofyan said that the construction for those projects can be finished by seven months. The North Maluku PUPUR Office has prepared the administration for an early construction tender, but the process is still in the review stage by the Inspectorate and has produced several notes related to the price.

"So, to enter a strategic project, there must be clarity on the specifications, funding sources, and project value. All of that will be reviewed by the Inspectorate, then forwarded to the Legal Bureau to check the contract value and its articles. After that, it will return to the Commitment Making Officer (PPK) to make a notification to the BPBJ Bureau," said Sofyan.

He added that after the review process by the Inspectorate, his party was ordered to re-check the project location in the field. However, all preparations have been completed, and the auction will begin soon.

"After being reviewed by the Inspectorate, it turned out that we were ordered to re-check in the field. But everything is finished, and we will start conducting an early auction," concluded Sofyan.

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