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

April 16, 2025

North Maluku Governor Sherly Laos inaugurated the reopening of the Port of Sofifi Port on Mar. 26, 2025. The event was attended by North Maluku Deputy Governor Sarbin Sehe, the North Maluku Provincial Government Regional Secretary, representatives of the North Maluku Province and Tidore Islands City Regional Leadership Coordination Forums (Forkopimda), the leadership of the North Maluku Provincial Government organizations, and invited guests.

Sherly's arrival was greeted with the Cakalele Dance performed by a local dance studio. The event was then continued by the singing of Indonesian national anthem 'Indonesia Raya'. As part of the inauguration ceremony, Sherly and Sarbin also handed over 100 free staple food packages to orphans and widows, as well as personal protective equipment (PPE) for dockworkers.

Sofifi Town Public Service Unit (UPP) III Head Sofifi Bram Haribowo expressed his gratitude for the increase in the status of the Port of Sofifi to a Segment I Port.

"This means that there has been an increase in both quality and quantity [of services in the port]," he explained.

However, Sofifi Town UPP III also highlighted the inadequate road access to the port, and requested the attention of the North Maluku Provincial Government and the Tidore Islands City Government to promptly improve upon the issue.

Meanwhile, Sherly Laos emphasized that North Maluku is very dependent on maritime transportation due to the province being  an archipelago.

"I am grateful that the Port of Sofifi can operate again today [Mar. 26, 2025] with the docking of KM Mutiara Ferindo III," she noted.

"Currently, the Port of Sofifi is still meant specifically for cargo transportation. In the future, we hope to increase its capacity to become a container transportation port. However, this is impossible to realize if the road access to the port remains in a damaged condition," Sherly added.

Therefore, she ordered the North Maluku Regional Secretary and the Transportation Agency to immediately coordinate in the repairs.

After the inauguration, Sherly and her entourage took the time to review KM Mutiara Ferindo III, which docked to the port as part of the event, to ensure the condition of the ship. The governor also chatted with passengers about the ship's facilities, as well as their experiences during the trip. Several passengers took advantage of the moment to take selfies with her.

At the end of the event, Sherly expressed her hope that the Port of Sofifi could be a driver of inclusive economic growth for North Maluku and have a positive impact on the welfare of the province's people.

"Hopefully the port can improve connectivity and accelerate the distribution of goods and services so that the economy of North Maluku will be more advanced and [its growth] evenly distributed," she concluded.

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