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

June 23, 2025

The 2025 Kora-Kora Festival was officially held with a series of activities taking place at the Nukila Park area of Ternate City, North Maluku Province on June 19, 2025. The festival, which was held until June 21, 2025 began with a boat decoration competition as the opening event.

Ternate Mayor M. Tauhid Soleman stated that this festival was a form of joint commitment to develop the tourism industry through holding cultural events.

"This festival does not only belong to Ternate, but to all people of the nation. Here, we witness attractions that include Kora-Kora boats, traditional art performances, and MSME (micro, small, and medium enterprise) exhibitions, all of which are spaces to celebrate culture," said Tauhid during his remarks opening the event.

"I invite all of us to not only be spectators, but also active actors in maintaining and preserving culture," he added. "This festival is also part of an effort to make Ternate City a City of Spices that is an inclusive and sustainable tourist destination."

Kora-Kora Festival 2025, which has "The Maritime Pathway to the Indonesian Archipelago's Heritage" as its theme, is one of the 110 events listed in the Tourism Ministry's Karisma Event Nusantara (KEN) calendar of cultural festivals.

Meanwhile, Tourism Ministry Regional Events Assistant Deputy Reza Fahlevi, who also had an opening speech, said that the collaboration and uniqueness of the Kora-Kora Festival 2025 has had a positive impact on the local economy.

"We hope that this event could increase tourist visits to North Maluku, especially Ternate City. In addition, this festival is expected to encourage the growth of MSMEs, creativity, and the preservation of cultural values," concluded Reza.

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