The provincial government of Maluku Utara (North Maluku) is fully committed to transforming the region into a hub for spice and coconut processing, not merely a supplier of raw materials. Sherly Tjoanda, the Governor, underlined the ambition that local farmers should take centre stage in downstream industries, leveraging value-added production (rather than exporting raw commodities) to uplift their welfare. According to Governor Tjoanda, the focus on processing (‘hilirisasi’) is key to raising farmers’ prosperity and repositioning the region’s agricultural output at the forefront of the market.
At the same time, Andi Amran Sulaiman, Indonesia’s Minister of Agriculture, noted that the national government has earmarked IDR 371 trillion in investment for strategic downstreaming of agriculture and plantations across the country, with special priority given to areas—like North Maluku—that show strong local commitment. The minister highlighted that commodities such as nutmeg, clove and coconut are historically significant for the region and have the potential to generate exponentially greater value if processed into derivative products (for example coconut milk and oil). The message is clear: moving beyond raw commodity exports to in-region processing by the community can drive structural economic transformation and restore Indonesia’s legacy as a world-class spice producer.
