Trucks at Indonesia Weda Bay Industrial Park (IWIP), an integrated industrial area for heavy metal processing located in North Maluku, Indonesia. (Photo: CNA/Kiki Siregar)
NORTH MALUKU, Indonesia: It was a quarter past eight in the evening but Mdm Imah Fatmalati still had a job to complete before calling it a day. The 39-year-old Indonesian was busy sewing a shirt in a little dwelling in Weda district on Halmahera island. The new tailor, who was just two weeks into the job, told CNA: “The money is not bad. I can get about 200 thousand rupiah (US$13.20) per day.”
In search of better wages, she moved to North Maluku from Gorontalo province in Sulawesi where she had worked as an administrative staff in a hospital. “The money is better here. I was a contract staff at a hospital earning 800,000 rupiah per month,” she said. Tailor Imah Fatmalati is originally from Gorontalo province in Sulawesi. (Photo: CNA/Kiki Siregar)
So far, her customers are mostly workers who work at PT Indonesia Weda Bay Industrial Park (IWIP), an industrial area in Central Halmahera. Established in 2018, IWIP is an integrated industrial area which facilitates nickel smelting for stainless steel and components of electric vehicle batteries. It is a national priority project for the country as Indonesia aims to be a global player in the electric vehicle (EV) industry since it is the world’s top nickel producer. Nickel is a key component of EV batteries. Currently, about 22 per cent of the world’s known nickel reserves are in Indonesia. And according to Indonesia’s ministry of energy and mineral resources, about 30 per cent of the country’s nickel ore output is from North Maluku. Eventually, Indonesia aims to manufacture EVs locally. But for now, the government is focused on developing nickel smelter hubs. They are mainly in an industrial park called Indonesia Morowali Industrial Park (IMIP) in Central Sulawesi, in North Maluku’s IWIP as well as in Southeast Sulawesi province. These are also the main nickel-producing regions. IWIP claims to be the first integrated industrial estate to facilitate mineral smelting and to produce components of electric vehicle batteries in Indonesia, and the second biggest after IMIP. IWIP’s tenants include joint venture firms with Chinese companies' such as Huayou Group and Tsingshan Group. The latter is the world’s largest stainless steel producer. With the injection of Chinese capital, North Maluku’s economy has been growing exponentially. Its economic growth was about 6 per cent in 2019, but climbed to 23 per cent last year. Mining company workers in Weda district, North Maluku, Indonesia. (Photo: CNA/Kiki Siregar)
President Joko Widodo has claimed North Maluku’s economic growth was the highest globally. He attributed it to the downstream nickel industry, where the raw material is processed locally until it becomes a ready-to-use product. Indonesia is rich in natural resources but for years it was just an exporter of raw materials and an importer of finished products. Mr Widodo is trying to change this by growing the downstream industry to create higher-value products. "There is a smelter industry there which will grow further if there are more smelters. All those derivatives industries of nickel can be done in North Maluku," he said at an event last November. The new industries mentioned by Jokowi, as the president is popularly known, are primarily in Weda where Mdm Fatmalati is now calling her new home. Still, despite its growing economic prosperity, some say that the wealth generated from the industries has yet to trickle down. Related:
RICHES YET TO TRANSLATE TO DEVELOPMENT
Before Indonesia’s independence in 1945, North Maluku used to be ruled by several sultanates such as the sultanates of Tidore and Ternate. Weda falls under the territory of the Tidore sultanate which still exists today. The sultan does not have any political power but is a member of the country’s Regional Representative Council that works on drafting law proposals. Tidore’s Sultan Husain Alting Sjah told CNA that only a small portion of North Maluku’s 1.3 million population has benefitted from the province’s economic boom. “The source (of riches) is here, but it does not end here … what we see is only smelters and people coming. We really like investments but it is far more important that people (here) have a decent life,” he said. In 2022, about 6.2 per cent of North Maluku’s population was considered poor by North Maluku’s statistics agency. This is a slight decrease from 6.9 in 2021. The provincial poverty rate has been constant at around 6 per cent for the past few years, despite the investments. While the province may enjoy high economic growth, lack of infrastructural development means that certain services, such as Internet reception, are lacking. Mr Reynald Manggis, who owns a small bubble tea stall outside of IWIP, said that telecommunication connectivity is lacking. “The reception here is bad, especially when you want to use the Internet. “If the reception here is good, where there is proper Internet … perhaps people here would be more prosperous,” he said, adding that this will make it easier to do business including for the small companies. Mr Reynald Manggis (left) owns a bubble tea stall near IWIP in North Maluku, Indonesia. (Photo: CNA/Kiki Siregar)
Besides issues about unequal wealth distribution, residents of North Maluku also have to contend with environmental degradation as a result of the smelters. Tidore’s Sultan Husain Alting Sjah believes that the downstream industry in Weda would lead to further environmental degradation, just as it did in other parts of the province. He said that when state-owned enterprise ANTAM used to mine on Gebe island in North Maluku, the environmental damage there was apparent. "The nature there was destroyed," he said. When contacted by CNA, ANTAM’s general manager for North Maluku’s nickel mining business unit Ery Budiman said that the firm used to mine there between 1997 and 2005. He said they now mine nickel in three different areas in North Maluku and send the output to the smelters in Weda, Central Sulawesi and Southeast Sulawesi. The firm, said Mr Budiman, tries to minimise its environmental impacts. “The environment is very important to us. Do not let the mining damage the environment here,” he said. The company runs programmes to restore the land damaged by the mining. They also monitor the health of the surrounding waters and replant mangroves, he said. ANTAM’s general manager for North Maluku’s nickel mining business unit Ery Budiman. (Photo: CNA/Kiki Siregar)
LIFTING OF EXPORT BAN ON NICKEL MAY IMPACT REGIONAL GROWTH
North Maluku’s economic growth can be attributed, in part, to Jokowi’s efforts to develop the downstream capabilities of certain industries - in particular, the mining and mineral sectors. Indonesia has also imposed an export ban on nickel ore since January 2020, in a bid to support its downstream industries. The downstreaming means that commodities have a higher added value when eventually sold. The European Union, however, has disputed Indonesia’s nickel ore export ban. It filed a lawsuit against Indonesia at the World Trade Organization (WTO). The bloc argued that Indonesia’s export restrictions harmed its own stainless steel industry. The WTO panel ruled in favour of the EU but Indonesia filed an appeal in December last year. Should Indonesia lose its appeal, the country will lose a sizable investment realisation, said Jakarta-based economist Bhima Yudhistira from the Center of Economic and Law Studies (CELIOS). This means that foreign companies which have invested in smelter hubs like IWIP and IMIP may pull out and decide to just import raw material. “For example, China will tend to import raw ore compared to having to expand nickel smelter factories in Indonesia,” said Mr Yudhistira. Mr Mohammad Faisal, executive director of Center of Reform on Economics (CORE) Indonesia, a think tank which focuses on research in economy and industry, shared the same view. "This will disrupt the development of the smelter process and its derivatives, and affect areas that have boosted investment in downstream mines such as in North Maluku, Central Sulawesi and Southeast Sulawesi." The potential implication is that North Maluku’s economic growth - touted by Jokowi as the highest globally - may not be sustainable in the long run. Head of North Maluku’s statistics agency Aidil Adha told CNA that high economic growth last year was due to the volume of ferronickel export and mining. Ferronickel is an alloy containing about 25 to 40 per cent nickel and about 60 per cent iron. “A new product will always lead to high economic growth. But when the production has stabilised, the economic growth will stabilise,” said Mr Adha. When that happens, he predicted that the province’s economic growth may hover between 10 and 15 per cent. Mr Adha noted that a similar situation had occurred in Morowali, Central Sulawesi where the downstream industry helped spur the economy there by up to 20 per cent initially. It is now at a stable growth rate of between 10 and 14 per cent, he said. Wealth generated from the industries in North Maluku has yet to trickle down equally. (Photo: CNA/Kiki Siregar)
For locals in North Maluku to benefit from the industrialisation of the province, Mr Yudhistira from CELIOS said they should be recruited into higher positions. “Even if there are foreign workers there, they should only serve to transfer knowledge to local workers in North Maluku,” he said, noting that Chinese workers tend to hold upper management positions in areas such as IWIP. Educational institutions should also build their curriculum in accordance with industry needs, said Mr Yudhistira. Related:

North Maluku is Indonesia’s nickel powerhouse, but does the wealth filter down?

North Maluku is top of the national happiness index, with an easy-going approach towards life and strong economic growth. CNA looks at the local values as well as developmental challenges. North Maluku province has topped Indonesia’s happiness index since 2017. (Photo: CNA/Kiki Siregar)
North Maluku province, which is part of the area known historically as the Spice Islands, has topped Indonesia’s happiness index since 2017
Those interviewed by CNA attributed this to a culture of tolerance and mutual cooperation
Strong economic growth has also played a part, according to President Joko Widodo
However, the province continues to face various developmental challenges, including the need to strike a balance between industrialisation and environmental protection
NORTH MALUKU: Basri left his office early in the morning to meet some clients in a remote village in eastern Halmahera, North Maluku province. The banker’s drive was interrupted when a truck carrying goods for a mini-mart overturned on the main and only road on the 17,780 sq km island. The vehicle blocked the road and various grocery items such as cooking oil, rice and diapers were scattered. There was no reception in the rugged area to call the police and no way to remove the truck without heavy machinery. Taking it in their stride, Basri and others at the scene started chatting, relaxing and sharing their food. “Even though this is an accident, people are still happy,” Basri, who goes by one name, told CNA. Such scenes are not uncommon in North Maluku, which has been dubbed Indonesia’s happiest province. According to a report released by the Indonesian statistics agency last June, the province’s happiness index is at 76.34 points out of 100. North Maluku’s score was the highest among all provinces. The higher the score, the happier people are, according to the index. The Indonesian statistics agency defines happiness as comprising three main components, namely: life satisfaction, affection and meaning of life. It surveyed 75,000 households in July and August 2021 in all of the country’s 34 provinces. The parliament later agreed to establish four new provinces. In North Maluku specifically, the survey was conducted in all its regencies involving 1,040 households. The population of the province stands at 1.3 million. After North Maluku, the provinces of North Kalimantan and Maluku were ranked second and third respectively in the index. There are 10 indicators in the happiness index. Housing, income, jobs, community and education were measured. The other indicators that were measured include environment, health, life satisfaction, safety and work-life balance. The Indonesian statistics agency also released the happiness index in 2014 and 2017. However, the methodology used was different. In 2017, North Maluku also took the top spot with a score of 75.68 out of 100. With an easy-going approach towards life and a strong economy, things appear rosy for the people of North Maluku. But there are still many developmental challenges that need to be tackled. North Maluku province comprises hundreds of islands. (Photo: CNA/Kiki Siregar)
“PEOPLE HERE DO NOT WORRY”
On the ground, while not all who were interviewed by CNA had heard of the happiness index, they were not surprised with how the province had topped the list. On Tidore island, a rickshaw rider said he agreed North Maluku is the happiest province in Indonesia. “I am happy because here in Tidore, people are friendly.”
Over in Buli, eastern Halmahera island, Marcela Gumanggilung said she was happy due to an abundance of job opportunities and a diverse community of people from various parts of the country. “There are many companies here and there are many settlers from outside of the province,” said the 21-year-old hotel receptionist originally from North Sulawesi. She has been working in North Maluku since March last year. Marcela Gumanggilung is originally from North Sulawesi province. (Photo: CNA/Kiki Siregar)
Sudarminto, 30, also claims he is happy with his life. Originally from Buton, Southeast Sulawesi province, Sudarminto works at PT Indonesia Weda Bay Industrial Park (IWIP), an industrial area in Central Halmahera. “I have many friends (due to my job) from Sabang to Merauke,” he said, citing a popular Indonesian song describing the country as a huge archipelago. Sabang lies in the country’s westernmost province Aceh while Merauke is in the country’s eastern part of Papua. “From east to west, we gather here, so I get to know many people and we are close to one another,” said Sudarminto who goes by one name. With a monthly salary of about 7 million rupiah (US$450), he said he is happier in North Maluku as compared to working in Malaysia previously. Head of North Maluku’s statistics agency Aidil Adha told CNA: “People here do not worry. Even when there is an earthquake, they are calm.” 
North Maluku comprises hundreds of islands which are mostly of volcanic origin and small earthquakes are relatively common. Adha, who hails from Sumatra and relocated from western Indonesia to the province about two years ago, admitted that he was initially surprised by the worry-free approach to life. He recounted how he wanted to quickly evacuate upon feeling a little earthquake in his office - a habit he developed as Sumatra is also prone to quakes. But he was shocked to find his colleagues remaining calm and carrying on with their work as if nothing happened. Historically, the province used to be ruled by several sultanates such as the sultanates of Tidore as well as Ternate. In an interview with CNA, Tidore Sultan Husain Alting Sjah noted that people in North Maluku have a unique cultural system anchored by tolerance. “And we are very open when it comes to religion,” he added, noting that these values have been passed on for generations. Tidore's Sultan Husain Alting Sjah is also a member of Indonesia's Regional Representative Council. (Photo: CNA/Kiki Siregar)
Some parts of the province like Tidore are predominantly Muslim but in other parts such as eastern Halmahera, there are many Christians and the sight of a church standing just a few metres away from a mosque is not unusual. The Sultanate of Tidore became part of Indonesia when the country gained independence in 1945. The sultanate was later revived after Soeharto stepped down. However, the current sultan is not of a hereditary lineage. He is elected by the people of Tidore. The sultan does not have any political power but is a member of the country’s Regional Representative Council. The sultan has a legislative duty such as submitting proposals for draft laws. North Maluku and neighbouring Maluku province are also known as the spice islands as they are blessed with an abundance of spices such as clove and nutmeg. It is believed that the former is native to Ternate. These spices were key for the colonial interests of several European powers. Historically, the colonial powers jostled for control of the islands as a strategic base for the then highly profitable spice trade. Related:
Another distinguishing factor of North Maluku culture is a strong ethos of cooperation at the grassroots level. Herman Oesman, a sociology lecturer at North Maluku Muhammadiyah University in Ternate, told CNA: "There are many factors that cause the North Maluku happiness index to be the highest (in Indonesia). First, the level of mutual cooperation at the community level is good. “Secondly, the community solidarity is thick or strong. This is also backed up by local values that have been maintained from the past until now." These traits could be seen during the truck accident in East Halmahera, which was witnessed by CNA last month. When a small truck finally arrived at the scene to pick up the mini mart’s goods, Basri and other stranded travellers immediately helped to pick up the groceries and loaded them onto the vehicle. “We have tolerance among drivers because there is nothing else we can do,” said truck driver Kirno, who goes by one name. “Help is far away, so we just have to wait and make the best out of the situation,” he said. There is only one main road on Halmahera island, North Maluku province. (Photo: CNA/Kiki Siregar)
After about three hours, an excavator arrived at the truck accident scene, clearing soil near the main road so that small vehicles could pass by. The stranded travellers went back to their vehicles and as they continued their journey, they waved goodbye to those they had bonded with while waiting. “A situation like this cannot be prevented, but when we are together, we are happy,” said Basri the banker. The happiness index released by the government provides useful insights into what constitutes sound regional development, said Jakarta-based economist Bhima Yudhistira from Center of Economic and Law Studies (CELIOS). Yudhistira noted that the success of regional development is typically judged by the availability of infrastructure, economic growth, poverty, unemployment rate, regional revenue and expenditure as well as other economic indicators. “But now the elements of economic success are not just output production. Quality (of life) and life satisfaction are also important points. “There are regions that conserve nature well, have a culture of helping one another and have quite high tolerance ratings. These are also elements of successful development,” he said. On the other hand, there are regions with high economic growth but the depression and suicide rates there are also high. This can be regarded as a failure of economic development, he noted. Yudhistira added that regions with a high happiness index score are politically more stable and attractive to sustainable investment. PT Indonesia Weda Bay Industrial Park (IWIP) is an industrial area in Central Halmahera, North Maluku. (Photo: CNA/Kiki Siregar)
PROVINCE ENJOYS HIGHEST ECONOMIC GROWTH IN THE WORLD: JOKOWI
In addition to a high ranking on the happiness index, North Maluku has also enjoyed the highest economic growth in Indonesia. Last year, the provincial economy grew almost 30 per cent in the first quarter and about 27 per cent in the second quarter. In the third quarter, it grew by close to 25 per cent, prompting President Joko Widodo to say at an event that the province has the highest economic growth globally. "The economic growth is already very high, the highest in the world is in North Maluku. Don't believe it? Just check. Where is there economic growth of a province at 27 per cent?" said Jokowi as the president is popularly known. North Maluku’s Gross Regional Domestic Product in 2021 was about 52 trillion rupiah (US$3.4 billion). He also pointed out that the province’s inflation rate was just about 3 per cent, lower than the national figure of about 5 per cent. Jokowi said the high economic growth is due to the development of new industries in North Maluku, particularly in nickel mining. He suggested a link between the economic situation and people’s happiness levels. “How can the people not be happy, the inflation is just 3.3 per cent and the economic growth is 27 per cent,” he said. “According to the survey where every province was surveyed, the people of North Maluku are the happiest,” he added. The new industries mentioned by Jokowi are located in Weda, in Central Halmahera. The area is home to IWIP which is a nickel-based integrated industrial area established in 2018. IWIP is a national priority project as Indonesia wants to be a global player in the electric vehicle (EV) industry. Nickel is a key component of the batteries powering EVs. Related:

IN FOCUS: Why is North Maluku the happiest province in Indonesia?

Ministry releases 3,000 clownfish seeds during Sail Tidore 2022
25th November 2022
11 minutes ago
Officials from the Maritime Affairs and Fisheries (KKP) Ministry releasing clownfish seeds into Tidore waters in North Maluku province during Sail Tidore 2022. (ANTARA/HO-KKP Ministry/uyu)
We always keep preserving the sea, thus it remains healthy, while maintaining the balance of ecological, economic, and social aspects. Jakarta (ANTARA) - The Directorate General of Aquaculture of the Maritime Affairs and Fisheries (KKP) Ministry has released three thousand clownfish seeds into Tidore waters, North Maluku province, to support the implementation of Sail Tidore 2022. Also known as fish stocking, the activity was an example of the implementation of blue economy to realize the sustainable utilization of marine and fishery resources, director general of aquaculture, Tb Haeru Rahayu, said in a statement released on Saturday. The release of the fish seeds was aimed at preventing the extinction of the species in Indonesian waters, he added. "Clownfish is a commodity which is in great demand by ornamental fish enthusiasts. Hence, to maintain its sustainability, it is necessary to be protected, one of which is by stocking it," the director general explained. He said that the clownfish seeds were obtained from one of the directorate general’s technical implementation units (UPT), namely the Ambon Marine Aquaculture Fisheries Center (BPBL), which has succeeded in cultivating 50 variants of clownfish. The clownfish seeds were chosen to be released into the Tidore waters since they are among the habitats of the reef fish. "The stocking activity has been routinely carried out by the Maritime Affairs and Fisheries Ministry in various public waters throughout Indonesia,” Rahayu said. The activity aimed to maintain Indonesia’s aquatic ecosystems, preserve the health of the aquatic environment, as well manage the sustainability of the fishery sector, he added. Currently, the ministry’s UPTs have successfully mastered the cultivation of various commodities, including various types of fish native to Indonesia as well as marine ornamental fish with high economic value. "The success of this mass fish farming is an important breakthrough to preserve fishery resources in Indonesia. We always keep preserving the sea, thus it remains healthy, while maintaining the balance of ecological, economic, and social aspects," the director general added. Sail Tidore 2022 is being implemented from November 24–29, 2022.

Ministry releases 3,000 clownfish seeds during Sail Tidore 2022

Ternate set to welcome tourists during Sail Tidore 2022
9th November 2022
28 minutes ago
Ternate city, North Maluku Province. (ANTARA/Abdul Fatah)
Ternate, North Maluku (ANTARA) - The Ternate municipal government is set to welcome tourists during the international maritime event Sail Tidore scheduled in Tidore Islands City, North Maluku Province, on November 24-29, 2022, Ternate Mayor M. Tauhid Soleman stated. "Ternate is the gate for thousands of domestic and foreign tourists coming for Sail Tidore. Hence, hotels and other accommodation service providers must prepare proper facilities for them," Soleman noted here on Thursday. Sail Tidore is themed "Tidore as a world heritage city that unites nations." Ternate, as a transit city, will optimally use the opportunity to welcome tourists, the mayor stated. The city will promote its tourist destinations, cultures, and arts during the event. He also urged local micro-, small-, and medium-scale enterprises to promote their products, such as food and handicrafts, that would draw the interest of tourists to purchase as souvenirs, among other things. The mayor reminded star-rated hotels to offer the best rooms and facilities for very important guests during the event. President Joko Widodo and Tourism and Creative Economic Minister Sandiaga Uno will be in Tidore Islands for the inauguration of Sail Tidore. Head of the North Maluku Cooperatives and Small and Medium scale Enterprises Office Wa Zaharia remarked that all SMEs in the province are invited to participate in an exhibition to be held to promote local products during Sail Tidore. Sail Tidore 2022 is part of the series of Sail Indonesia that is aimed at accelerating the development of underdeveloped regions in Indonesia, the world's largest archipelagic country, with more than 17 thousand islands.

Ternate set to welcome tourists during Sail Tidore 2022

N Maluku megalithic artifacts likely linked to ancestor worship
1 hour ago
A stone altar, identified as a megalithic artifact, has been preserved in Gurabunga village, Tidore, North Maluku after its discovery was recorded by the Maluku Archaeology Office. There is a possibility that the megalithic artifacts discovered in North Maluku are related with the practice of ancestor worship
Ambon, Maluku (ANTARA) - The Maluku Archaeology Office has said that the megalithic artifacts discovered in Halmahera, Tidore, and Moti Islands, North Maluku, could be related to ancestor worship practiced by ancient settlers. "There is a possibility that the megalithic artifacts discovered in North Maluku are related with the practice of ancestor worship," archaeologist Marlyn Salhuteru stated on Tuesday. The megalithic artifacts comprise stone altars, stone mortar and pestles, holed and scratched stones, and sacred places marked by a menhir, stone formations, tombs, or large trees, he revealed. The artifacts were discovered in 15 areas identified as ancient villages in Halmahera, Tidore, and Moti Islands, the archaeologist added. A 55x50 cm flat stone altar discovered at Gurabunga village in Tidore Island, formerly under the Islamic Tidore Sultanate rule, was used by the ancient people for rituals, Salhuteru said. "A megalithic network has been discovered in Halmahera, Tidore, and Moti Islands, and we should continue our research to expand our comprehension on megalithic culture and artifacts in North Maluku, as currently academic resources on the topic are scarce," the archaeologist said. North Maluku has played an essential role in the archipelago's history, as islands in the province served as an ancient culture bridge in the prehistoric era and the base of powerful kingdoms in the early modern era, he explained.

N Maluku megalithic artifacts likely linked to ancestor worship

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