Economic Growth in North Maluku Is the Highest in the World

electric vehicle battery factory in North Maluku

The highest percentage of economic growth in the world is in Indonesia, precisely in North Maluku Province. This province’s economy is recorded to have grown by almost 27% until the third quarter of 2022.

This growth was conveyed directly by President Joko Widodo at the 2022 Bank Indonesia Annual Meeting at the Jakarta Convention Center (JCC), Senayan, Jakarta, Wednesday (30/11/2022).

“North Maluku is trying to check the province’s 27% high economic growth in the world,” said Jokowi.

Economic growth there was able to soar 26.94% (year on year/yoy) or the highest in the world until the third quarter of 2022.

North Maluku’s Gross Domestic Product (GDP) grew 28.33% (YoY) in the first quarter of 2022, shot up 27.75% (YoY) in the second quarter of 2022, and flew 24.85% (YoY) in the third quarter of 2022. Cumulatively, the province’s GDP grew 26.94% so far this year.

Growth of 26.94% is the highest compared to 34 other provinces. This growth is equivalent to five times the national cumulative growth (5.40%) and also almost five times compared to DKI Jakarta (5.39%).

Furthermore, President Jokowi has said this is caused by nickel downstream which has been carried out by the government and the private sector in recent years. When the price of nickel rises, the area gets a big profit.

“Because of what, the jump was due to downstream. There is a smelter industry there. It will grow. If there is an added nickel derivative industry, it can be carried out in North Maluku,” he explained.

However, Jokowi warned that this would not continue. Prices will fall and of course, have a negative impact on the regional economy.

When compared to other provinces that rely on household consumption, North Maluku relies on exports and investment to drive its economy.

In the third quarter of 2022, exports contributed 150.61%. However, North Maluku’s imports also grew very large so the net export-import decreased. Investment contributed 69.17% while household consumption accounted for 37.51%.

Exports grew 108.82% cumulatively (quarters I-III 2022) while investment jumped 76.98%.

The total export value of North Maluku in January-October exceeded US$ 6.7 billion, where iron and steel accounted for 86.7% of total exports.

North Maluku’s iron and steel exports reached US$ 5.81 billion, followed by nickel (US$ 851.84 million), and metal ore, crust, and ash (US$ 39.96 million).