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

May 7, 2025

Eramet Indonesia Chief Executive Officer (CEO) Jerome Baudelet, in response to reports that the subsidiary of French mining company Eramet SA plans to collaborate with the Daya Anagata Nusantara Investment Management Agency (Danantara) in the Indonesia Weda Bay Industrial Park (IWIP) nickel downstream project, stated that the approach aims to bridge relations between Indonesia and Europe in the electric vehicle (EV) battery supply chain.

"Collaboration with Danantara has the potential to be a strategic opportunity for Eramet to strengthen its position in Indonesia's critical mineral sector, while also strengthening relations between Europe and Indonesia in the EV battery supply chain," he said on May 6, 2025.

However, Eramet has not been able to detail what projects the company will collaborate on with Danantara, including the potential investment value to IWIP in Central Halmahera Regency, North Maluku Province.

"This discussion is still in the early stages and it is too early to make further statements," Jerome explained.

Meanwhile, Danantara CEO Rosan Perkasa Roeslani said that Danantara is open to Eramet's investment offer in Weda Bay to expand the French corporation's nickel mining downstream portfolio in North Maluku. He added that Eramet is committed to continuing the nickel ore downstream plan currently operated by PT Weda Bay Nickel (WBN), Eramet's joint venture with Tsingshan Holding Group and Indonesian state-owned enterprise (SOE) PT Aneka Tambang Tbk (Antam).

However, said Rosan, Danantara is still reviewing the cooperation offer submitted by Eramet.

"Because they are also one of, if not the largest in Europe for investment in [nickel] downstreaming," he said.

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