Province

Riau

Riau, the homeland of the Malay people

Tucked away on Sumatra's eastern shore, Riau is a province home to around 7.18 people, as of 2022. The province stands as a symbol of Indonesia’s rich cultural diversity, natural resources, and vibrant economy. Its varied landscapes, diverse ecosystems, and blend of cultures have positioned the province as a region of significant environmental and economic contributions to the country.

Rich plains, coastal regions, and rainforests form the varied topography of Riau, with the region’s abundance increased by numerous rivers, such as the Siak and Indragiri rivers. Moreover, a diverse range of flora and fauna, including endangered species such as the Sumatran tiger, orangutan, and Riau peacock, may be found in the province’s tropical rainforests.

Riau’s natural environment offers a variety of tourist destinations. Examples include Ulu Kasok in Kampar, dubbed the “Raja Ampat of Kampar” for its natural beauty; Jemur Island, which is home to groups of islands serving as the natural habitat of several turtle species; and the Kampar River, which attracts surfers worldwide with its unique waves.

Furthermore, Riau boasts historical sites with distinct religious backgrounds, such as the Muara Takus temple, Agung An-Nur Mosque, and the Siak Sri Indrapura Palace. Historically, Riau has also served as a hub of exchange and trade, with commercial routes crossing the province. This historical aspect is reflected in Riau’s multiculturalism, with its diverse ethnic groups such as the Chinese, Minangkabau, and Malay communities adding to the province’s cultural tapestry.

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Economic sector

Due to its strategic location along the Malacca Strait, Riau is well-positioned to facilitate investment and commerce, acting as a gateway to global trade routes. The province benefits from access to road, air, and sea transportation networks. Notably, Pekanbaru and Dumai ports are important hubs for the export of goods such as rubber, lumber, and palm oil. Furthermore, the province's growing infrastructure, including airports, industrial zones, and highways, enhances its appeal to investors and business owners.

Nationally, Riau is renowned for its production of rubber, timber harvesting, and oil and gas extraction, all of which significantly impact Indonesia’s Gross Domestic Product (GDP) and export revenues. The province also significantly contributes to the country's forestry and palm oil industries, as well as the oil and gas industry, hosting substantial extraction and refining facilities.

Riau’s Gross Regional Domestic Product (GRDP) reached Rp 506.4 trillion in 2021 and increased to Rp 529.5 trillion in 2022. Mining emerged as the largest contributor to Riau’s GRDP in 2021 and 2022, accounting for 34.20 percent and 36.62 percent of the total, respectively. The processing industry followed closely at 9.14 percent in 2021 and 10.03 percent in 2022. Additionally, the transportation and warehousing industry, as well as the finance and insurance industries, form part of significant contributors to Riau's GRDP.

Moreover, Riau has made significant efforts in expanding investments. For example, between January and June 2023, the province successfully secured Rp 49.1 trillion from both local and foreign investment sources, marking a 10.6 percent increase from the previous year.

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Latest News

July 8, 2025

Riau Governor Abdul Wahid's attendance at the London Climate Action Week activity on June 23, 2025, received appreciation from prospective carbon trading investors. His participation is part of the Riau Provincial Government's support for the Indonesian government to implement Article 6 of the Paris Agreement under the United Nations Framework Convention on Climate Change (UNFCC).

Carbon credit buyers which took part in the London Climate Action Week included major companies such as Shell, Microsoft, Standard Chartered, Emergent, and Citigroup, as well as governments such as the Greater London Authority (GLA) and organizations involved in green projects.

Large companies and organizations involved in this green project are obliged to purchase carbon credits to offset the emission footprint caused by their industry as a form of full commitment to Article 6 of the Paris Agreement. The companies are looking for a jurisdiction that is considered ready to implement a carbon trading scheme according to the Paris Agreement, with the main consideration being strong commitment by the involved central and local governments for the carbon credit scheme.

Forestry Ministry Climate Change Expert Staff Haruni Krisnawati, who represented the Indonesian Government for her presentation session, conveyed Indonesia's readiness with the support of the Riau Provincial Government's commitment to support a green economy in Indonesia.

Haruni explained that Riau is one of the provinces that has a strong initiative for sustainable development, especially in reducing carbon emissions.

"The Indonesian Government is committed to reducing carbon emissions together with the Riau Provincial Government," she added.

Acting Riau Regional Development Planning Agency (Bappeda) Head Purnama Irawansyah, who accompanied Abdul Wahid for the meeting, explained that there were at least three main issues that were discussed by carbon credit buyers in finding sellers. First, policy initiatives at the regional level. Second, their readiness in terms of provincial UNFCC REDD+ architecture. Third, the alignment of commitments between a country's government and its regional governments.

Purnawan stated that Abdul Wahid's participation in the London Climate Action Week was a strategic step for the Indonesian carbon credit market because Riau has great potential for absorbing global carbon emission. He added that the governor's attendance also showed his commitment to creative solutions for development challenges amid the state budget deficit situation.

"The governor's presence is to convince potential buyers together with the [central] government. The central government and regional governments must be in harmony," Purnawan said.

"Riau already has a policy initiative, namely Green for Riau, our REDD+ architecture readiness is also underway, and the Riau Governor has met several times directly with the relevant ministers to convey his commitment to support the government in implementing Article 6 of the Paris Agreement," he added. "Alhamdulillah, there are already investors who are interested, we will follow up on it later."

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