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

September 11, 2024

The Transportation Ministry, through its Sea Transportation Directorate-General has officially granted concession rights towards Weda Bay Port to manage port service business activities at Lelilef Port in Lelilef Village, Central Weda District, Central Halmahera Regency, North Maluku Province through Transportation Ministerial Decree No. KM 54 of 2024.

The signing of the Port Service Business Concession Agreement at Lelilef Port was carried out by the Class II Weda Port Management Unit (UPP) Office Head Febrianto D. Iskandar and Weda Bay Port President Director Xiang Binghe. The signing was was witnessed by Sea Transportation Director-GeneralCapt. Antoni Arif Priadi in the Sriwijaya Meeting Room at the Office of the Transportation Ministry on Aug. 6, 2024.

Capt. Antoni explained that Lelilef Port is designed to support the Indonesia Weda Bay Industrial Park (IWIP), an integrated industrial area included in the list of the country's industrial sector National Strategic Projects.

"Lelilef Port is projected to be able to accommodate the delivery and receipt of oceangoing and domestic ships. These ships will transport important materials for IWIP, such as raw materials, factory materials and equipment, power plant materials and equipment, construction materials, as well as coal with a maximum capacity of 3.6 million tons per year," he explained.

it is hoped that the concession will lead to an increase in concession income from Weda Bay Port to the government, raising the latter's non-tax revenue accordingly. The project is also expected to improve connectivity, develop maritime infrastructure, and drive economic growth for the people in Central Halmahera Regency and North Maluku as a whole.

"I hope that UPP Weda and Weda Bay Port can implement this concession in accordance with applicable regulations. In addition, it is also important to collaborate with the surrounding community and local government to advance the local economy," Capt. Antoni concluded.

The concession granted to Weda Bay Port includes the provision of ship services, provision and service of goods, and other services in a concession area of ​about 42,000 square meter (m²). The concession is valid for 40 years, with a concession fee of 5 percent of Weda Bay Port's gross revenue.

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