North Maluku Provincial Government: Inclusive Development through Connectivity

For North Maluku Governor Sherly Tjoanda Laos, the 81st anniversary of Indonesian independence is not only a historical milestone but also a reminder that independence must be realised through development that delivers justice and prosperity for all citizens. “A sovereign, just, and prosperous Indonesia. The word ‘just’ is about equity, while ‘prosperous’ is about welfare. That is the goal and hope of the people,” Sherly said. Although her province has recorded the highest economic growth in Indonesia in recent years, Sherly believes the main challenge is no longer pursuing growth figures but ensuring that the benefits of growth are felt evenly across society.

“Development in North Maluku is not yet inclusive. One of the main causes is connectivity, because many areas are still not connected by proper roads and bridges,” Sherly said. Limited infrastructure means economic activity, public services, and public mobility are not optimal. There are even villages that have waited 26 years for proper road access.

The public clearly wants connectivity development to be carried out immediately. For this reason, the North Maluku Provincial Government is seeking to accelerate infrastructure development through additional financing of around Rp 1 trillion. This step is considered more strategic than postponing development for several years. Sherly explained that many variables cause the cost of road and bridge construction to rise from year to year. Based on simulations, development postponed until 2027 or even 2030 would result in costs swelling due to inflation, with material price increases estimated at 30-50 percent.

“If it is built now, the total cost is actually more efficient. In addition, the economic benefits will be felt more quickly by the community. Therefore, we believe this development acceleration is very feasible,” she said. Nevertheless, she stressed that the plan must still follow the applicable mechanism, namely approval from the Regional People’s Representative Council and public support as important prerequisites before the financing scheme is implemented.

Currently, the North Maluku Provincial Government’s development focus is strengthening inter-regional connectivity. Around 25-30 percent of the Regional Revenue and Expenditure Budget is allocated to improving the stability of the provincial road network. When Sherly was inaugurated on 20 February 2025, the stability rate of approximately 1,000 kilometres of provincial roads had only reached 46 percent. Through the 2025 and 2026 regional budgets, the government has managed to improve around 100 kilometres of roads. This means around 440 kilometres still need to be completed by the end of her term.

Amid fiscal constraints and reduced central government transfers to regions, Sherly recognises that accelerating development cannot rely solely on increasing budget allocations. The provincial government is therefore implementing a dual strategy: strengthening regional fiscal capacity by increasing locally generated revenue while also making spending more efficient so that fiscal space for development grows.

According to Sherly, the results are beginning to show. North Maluku’s locally generated revenue increased from around Rp 800 billion to Rp 1.1 trillion in 2025. In 2026, the government is again targeting an increase to Rp 1.5 trillion. This increase is able to compensate for reduced transfers from the central government. “We are making efficiency as tight as possible. Even though the regional budget is shrinking due to cuts in transfers to regions, locally generated revenue continues to rise so that capital expenditure can actually increase,” Sherly said.

While infrastructure spending in the 2025 regional budget was only around Rp 100 billion out of a total budget of Rp 3.6 trillion, capital expenditure in 2026 has increased to around Rp 550 billion. The North Maluku Provincial Government is even targeting capital expenditure of Rp 1 trillion in the 2027 regional budget, in line with the target of increasing locally generated revenue by an average of Rp 300 billion each year.

One source of growth in North Maluku’s locally generated revenue comes from optimising motor vehicle tax receipts. As of August 2026, realised revenue from this sector had reached 100 percent of the annual target. This achievement forms the basis for the government to raise the locally generated revenue target in the revised regional budget to around Rp 1.5 trillion.

In addition to strengthening regional fiscal capacity, the North Maluku Provincial Government is actively building collaboration with the central government. Various strategic programmes have been realised, from the construction of People’s Schools by the Ministry of Social Affairs, Integrated Schools and school rehabilitation by the Ministry of Primary and Secondary Education, to fishing villages by the Ministry of Marine Affairs and Fisheries. There are also agricultural commodity development programmes from the Ministry of Agriculture; construction of regional roads, irrigation, and dams from the Ministry of Public Works; revitalisation of community health centres and hospitals from the Ministry of Health; and rehabilitation of uninhabitable houses from the Ministry of Housing and Settlement Areas.

Entering her second year in office, Sherly is pushing for improved quality of basic services. In the education sector, the North Maluku Provincial Government has begun implementing free schooling and reaching students living in island areas through distance learning for upper secondary level. With a hybrid learning system, students will participate in face-to-face learning at schools available on their respective islands, take part in online learning using materials on the Rumah Pendidikan platform, and have access to printed learning materials.

All learning processes will be under the guidance of the nearest parent school so that education quality is maintained. Pilot programmes have been launched in East Halmahera, Morotai Island, and Central Halmahera, and will begin to be implemented in the new academic year.