Province

Riau

Overview Economy

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

December 15, 2025

The Riau Provincial Government affirmed its commitment to fully support the acceleration of the Dumai-Melaka Roll-on/Roll-off (Ro-Ro) Line project, which is expected to improve regional connectivity and trade. This commitment was demonstrated by hosting a visit from the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) at the Riau Governor's Office on Nov. 17, 2025. The visit aimed to discuss economic, transportation, and trade cooperation in the Riau region.

The IMT-GT and the Riau Provincial Government, agreed to emphasize the importance of mutually beneficial and competitive economic cooperation. During the meeting, Center for IMT-GT (CIMT) Subregional Cooperation Director Amri Bukhari Bakhtiar and his team outlined various potential product and transportation development opportunities, including the Dumai-Melaka Ro-Ro project.

Meanwhile, Riau Province Regional Secretariat Assistant III Job Kurniawan assessed that this collaboration is a reminder that Indonesia and Malaysia can collaborate and be competitive economically, particulary in economics sectors affected by the Dumai-Melaka Roro project.

"IMT-GT reminds us how we can both be economically competitive. Yesterday, IMT-GT facilitated the development of products and transportation, one of which is the Dumai-Melaka Roro," he said in an official statement on Nov. 17, 2025.

Going forward, Job hopes that more sectors will receive support to strengthen joint competitiveness, from the economy and transportation to tourism, so that the results can be utilized by various businesses in Indonesia, especially in Riau.

"Hopefully, we can support more things to increase our collective competitiveness, both economically and in agriculture, transportation, tourism, and others," he said.

With the completion of the Dumai-Melaka Ro-Ro route for roll-on/roll-off cargo ships, it is expected that Riau will reap greater economic benefits, strengthen regional connectivity, and open new opportunities for local businesses. The project is considered to provide significant opportunities for Indonesian companies while boosting regional prosperity, particularly for Dumai City and Riau as a whole.

In addition to discussing cooperation on the Dumai-Melaka Ro-Ro project, the meeting between the Riau Provincial Government and IMT-GT also highlighted the potential for trade between Indonesia, Malaysia, and Thailand, and vice versa, to ensure this transportation route can become a profitable trading platform.

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