Since 2020, North Maluku has become the center of the Indonesian government’s ambitions in nickel mining and downstream processing. The impact has been significant: on paper, the province has recorded double-digit economic growth since 2021. Even in 2022 and 2023, amid the pressures of COVID-19, growth still exceeded 20%. While these figures look impressive, excessive reliance on nickel poses serious risks to the local economy and the environment.
Nickel is a finite resource, with prices and demand heavily influenced by global markets. Once reserves are depleted, North Maluku’s economic future could become unstable. Without proper mitigation, the industry risks leaving behind permanent environmental damage. Meanwhile, the RPJPN 2025–2045 has already emphasized the importance of more sustainable economic growth at the regional level.
Diversification is key. A CELIOS report identifies agriculture, fisheries, and renewable energy as promising sectors. With serious investment, these sectors could add an estimated IDR 76 trillion to North Maluku’s economy over 20 years, create 1.8 million jobs, and generate an additional IDR 28 trillion in income for workers in the renewable energy sector.
On average, this diversification could boost economic growth by about 2.96% per year over two decades, on top of existing baseline growth. The figure may not match the short-term surge driven by nickel, but it would be far more stable and sustainable. This approach would allow North Maluku to grow without sacrificing the environment, while laying the foundation for long-term economic prosperity.
Since the early 2020s, North Maluku has become the locus of the Indonesian government’s ambitions in nickel mining and downstream processing. The impact has been significant: on paper, this province’s economy has recorded double-digit growth since 2021. Even in 2022 and 2023, during the pressures of COVID-19, growth still surpassed 20%. While these figures look impressive, North Maluku’s heavy reliance on nickel poses serious economic and environmental risks.
Nickel is a non-renewable resource, with prices and demand highly volatile in response to fluctuations in the global market. Once reserves are depleted, the future of North Maluku’s economy could become unstable. Without proper mitigation, the industry also risks leaving behind permanent socio-ecological damage. Meanwhile, the RPJPN 2025–2045 has already emphasized the need for more sustainable economic growth at the regional level.
Diversification is the key. A CELIOS report highlights agriculture, fisheries, and renewable energy as promising sectors. With serious investment, these sectors could contribute an additional IDR76 trillion to North Maluku’s economy over the next 20 years, create 1.8 million jobs, and generate an extra IDR28 trillion in wages.
On average, this diversification could boost economic growth by about 2.96% per year over two decades, on top of the province’s baseline growth. The figure may not match the short-term surge driven by nickel, but it offers far greater stability and sustainability. This approach would allow North Maluku to grow without sacrificing the environment, while laying the foundation for long-term prosperity.
CELIOS [ID] North Maluku’s Economic Diversification Potential Download
CELIOS [EN] North Maluku Economic Diversification Potential Download