[3] The majority of Ambalau's population (6,846 at the 2010 census, rising to 9,225 as at mid 2023) resides on the coastal plains, in the settlements of Kampung Baru (969), Lumoy (1,209), Masawoy (750), Selasi (606), Siwar (890), Ulima (970) and Elara (1,452).

The latter moved to the island mainly through the large-scale transmigration programs supported by both the Dutch colonial administration in the 1900s and the Indonesian authorities in the 1950s–1990s.

By religion, most Ambalau residents are Sunni Muslims, with a small part of Christians and with some remnants of traditional local beliefs.

The small terrains of fertile land on the coast are used to grow maize, sago sweet potato, cocoa, coconut, allspice and nutmeg.

The Portuguese adventurers who entered the archipelago at the end of the 16th century concluded an agreement with Ternate on the joint development of Ambalau, but little came of this arrangement.

However, the main interest of the VOC was in the spice trade, and active economic exploitation of a small inaccessible island was considered unprofitable.

After the capture of the Netherlands East Indies by Japan during World War II in 1942, Ambalau, together with the rest of the Moluccas, was assigned to the zone of occupation of the Japanese 2nd Fleet.

The occupation formally ended in August 1945; however, the newly proclaimed Republic of Indonesia was unable to establish its power in such a remote region, and in early 1946 the Netherlands regained control of Ambalau without resistance.

A few months later, Ambalau, along with all the Moluccas, Sulawesi and the Lesser Sunda Islands, was included in the quasi-independent State of East Indonesia.