Province

North Maluku

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

September 2, 2025

Realized investments to North Maluku the current fiscal year has reached Rp 44.67 trillion as of the first half (H1) of 2025, or about 53.39 percent of the target for the province set by the Indonesian government. The data was conveyed directly by Acting North Maluku Investment and One-Stop Integrated Services Office (DPMPTSP) Head Yuni Marlina Soamole when contacted by reporters on Aug. 21, 2025.

"The national target, in this case from the Investment Ministry/BKPM (Investment Coordinating Board), is Rp 83.36 trillion," she explained.

Of the total investment value, the largest contribution came from foreign investment, which Yuni detailed to have reached Rp 40.23 trillion in H1 2025 or about 90.07 percent of the total investment value during the period. Meanwhile, domestic investments only contributed around Rp 4.43 trillion or 9.93 percent.

"Foreign investment is still very dominant, especially in the mining and nickel processing sectors which have long been the main targets for investment to North Maluku," Yuni added.

The investment trend in North Maluku showed significant improvement on an annual basis. Total realized investments to the province reached Rp 75.02 trillion in 2024, or 80.91 percent of the Rp 92.72 trillion target. Of that figure, Rp 65.89 trillion came from foreign investments while domestic investments contributed Rp 9.13 trillion.

According to Yuni, the dominance of foreign investments in North Maluku is not without reason. The province is rich in mineral resources, particularly nickel and other base metals which have become the focus for foreign investors. In addition, foreign investments are also flowing into the development of industrial estates, smelters, and renewable energy projects in regions such as the regencies of East Halmahera, Central Halmahera, and North Halmahera.

"North Maluku is now one of the provinces with the highest investment growth in Indonesia. The mining sector and the downstream nickel industry remain the mainstay, although the regional government will also encourage investment diversification to other sectors," she noted.

The North Maluku Provincial Government also recognizes the need to increase the contribution of domestic investments. Yuni stated that the local administration continues to strive to encourage domestic investors to go beyond supporting roles and become key players in strategic sectors.

"We will open wider opportunities for local and national entrepreneurs to get involved. Not just in the mining sector, but also in other sectors such as fisheries, plantations, tourism, and services," she explained.

The North Maluku Provincial Government promises to facilitate licensing, assistance, and legal certainty for investors through the province's DPMPTSP, thereby ensuring a welcoming business climate. The provincial government is also quite optimistic that North Maluku could achieve its investment target by the end of 2025.

"Given this trend, we are confident that [investment] realization by the end of 2025 will be higher than in 2024," Yuni concluded.

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