North Maluku Economy Grows 19.6% in Q1 2026, Governor Shely Reveals the Drivers
Jakarta, CNBC Indonesia - North Maluku’s economic growth remains the highest in Indonesia. In the first quarter of 2026, the province’s economy grew by 19.6% year-on-year, underpinned by the development of the mineral downstream industry, particularly nickel.
North Maluku Governor Sherly Tjoanda said this achievement was lower than the previous year’s economic growth, which reached approximately 34% year-on-year. However, the figure still demonstrates very strong economic performance.
‘Yes, last year we were 34% year-on-year. In the first quarter of 2026, it’s 19.6%. The majority comes from the downstream industry, especially nickel. The downstream industry has already started operating,’ Sherly told CNBC Indonesia, quoted on Friday (12/6/2026).
According to her, North Maluku’s success in maintaining its economic growth rate is inseparable from increased investment and domestic mineral processing activity. The rapidly developing nickel-based industrial estates have created greater added value compared to merely exporting raw materials.
In the early stages, the nickel processing industry in North Maluku primarily produced ferronickel using Rotary Kiln Electric Furnace (RKEF) technology. However, in recent years, industrial development has increasingly moved towards higher value-added products through High Pressure Acid Leach (HPAL) technology.
‘Then recently, new HPAL technology emerged, producing nickel sulphate. One of the materials for batteries. And this year, a battery factory has also opened. It produces battery cells for energy storage. Not only for electric vehicle batteries, but also for renewable energy storage. And the potential is still very large going forward,’ she said.
She assessed that this development shows North Maluku is not only becoming a centre for mineral downstreaming, but is also beginning to play an important role in the future energy ecosystem.
‘I feel North Maluku is on a very strategic renewable energy map. And there is still a lot of great potential in the future. This is just the beginning. We are just starting from the downstreaming that is underway in North Maluku,’ she said.