South Halmahera, N. Maluku. Obi Island in South Halmahera, North Maluku, has emerged as one of Indonesia’s major centers for nickel downstream industry. The growth of the industry has transformed the island, which is roughly four times the size of Singapore, while also creating new economic opportunities for surrounding communities.

Those opportunities are taking many forms. Farmers are becoming suppliers of food products, residents are turning land assets into business capital, and women’s groups are developing home-based enterprises into businesses generating billions of rupiah in annual sales.

One example is Darwan Aduhasan, 33, a farmer from Buton village on Obi Island.

As mining activity expands, Darwan believes agriculture still has significant room to grow.

“I believe providing for my family does not always have to depend on industry. Agriculture can also support communities, even in mining areas,” Darwan said.

His conviction has encouraged Darwan to persuade young people in his village to view farming as a promising profession. He subsequently established the Pelangi Farmers Group, which now has 17 active programs and aims to involve 100 young farmers.

For Darwan, developing agriculture in a mining area does not mean working against industrial development. Instead, the growing economic activity on Obi Island is creating demand and markets that local farmers can tap into.

Rice is one example. In addition to meeting local market demand, farmers’ harvests can also help supply the needs of employees at Harita Nickel.

Through the Community Development and Empowerment Program (PPM), the farmers’ group receives support ranging from seeds and technical training to assistance in expanding farmland. Farmers are also learning organic farming techniques, including how to produce compost and natural pesticides independently.

The results have been encouraging. During the January 2026 harvest, rice productivity among farmers in Buton village reached 8 tons per hectare, exceeding the national average of around 5 tons per hectare.

“What matters is how communities around mining areas can make wise use of their natural potential. With the right process, agriculture can become a strong source of livelihood,” Darwan said.

Turning Land Into Capital
The economic opportunities emerging on Obi Island are not limited to agriculture. For some residents, changes in the area have provided an opportunity to turn existing assets into new sources of income.

Madina Jouronga, 55, a resident of Kawasi village, is one example.

After selling his land in Akelamo, Madina used the proceeds to purchase a speedboat, which he now operates with his son.

Named Akelamo Jaya, the boat provides transportation services to Bacan. Madina estimates that he earns around Rp10 million ($600) in net income per trip. With about four trips a month, his income can reach approximately Rp40 million.

“I bought this speedboat with the proceeds from selling my land in Akelamo. I gave it that name so I would remember where it came from,” Madina said.

Previously, Madina relied on income from his plantation. Today, the asset he purchased has become a new source of income through her maritime transportation business.

A similar story comes from Nur Eneng Rahmat, 33, another Kawasi resident. She used proceeds from selling her land to build a house and develop a boarding-house business.

She now has 10 rental rooms, with monthly rates ranging from around Rp1.5 million to Rp2 million. Seeing further opportunities, Nur Eneng plans to expand the business to 30 rooms.

“As the demand grows, I want to increase the number to 30 rooms,” Nur Eneng said.

From a Housewives’ Group to a Growing Business

Another economic opportunity has emerged through micro, small and medium enterprises (MSMEs).

Delila Nomor, a resident of Kawasi village, is one example.

Seven years ago, Delila’s activities were largely centered around her home as a housewife. Today, she leads the Obi Jaya Mandiri Group, which has 31 female members.

The journey began when Delila and the group started developing processed food products using locally sourced ingredients. One of their early products was shredded fish, or abon ikan.

“I actually didn't know how to make shredded fish. But I taught myself. We went through a lot of trial and error from the beginning,” she recalled.

Their first products did not immediately meet the standards required for commercial sales. Delila and the other members continued refining their production process, from recipes and processing techniques to shelf life and packaging.

“At first, it only lasted a week. Then we kept learning until it lasted a month, and eventually we got it to six months,” she said.

Over time, the group developed skills beyond food production. Members learned about halal certification, business bookkeeping and business management.

Today, Obi Jaya Mandiri produces a range of processed foods associated with Obi Island, including shredded fish, banana chips, chili sauce, air guraka — a traditional ginger-based drink — candied nutmeg and various snacks.

The business has since expanded further. The group now also operates Nyala Cafe and Hop Mart, two businesses located within the Harita Nickel industrial complex.

Nyala Cafe is operated by 16 local MSME members and serves food and beverages to employees. Hop Mart provides a retail channel for products made by the group and other local businesses.

Through the two ventures, Delila and her fellow members have gained experience not only in producing goods but also in managing operations, finances and human resources.

In 2025, Nyala Cafe recorded approximately Rp985 million in revenue, while Hop Mart generated around Rp2.7 billion.

The two businesses also employ five workers, all managed by the group. Their operating capital comes from members, with individual investments based on each member’s financial capacity.

For Delila, the journey illustrates how local businesses can grow when communities are given opportunities to learn, experiment and gain access to markets.

Across Obi Island, the experiences of farmers, entrepreneurs and women-led businesses offer examples of how economic activity surrounding nickel downstreaming can extend beyond the industrial sector itself — creating new markets, businesses and sources of livelihood for local communities.

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