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

October 25, 2025

Riau Province's investment performance has continued to trend upwards, with realized investments to the province surging by 26.03 percent year-on-year (yoy) from Rp17.13 trillion in the third quarter (Q3) of 2024 to Rp21.59 trillion in Q3 2025 according to the Riau Investment and One-Stop Integrated Services Agency (DPMPTSP).

On a quarter-to-quarter (qtq) basis, the achievement also represented a significant increase of 70.38 percent percent from Rp12.67 trillion in the second quarter (Q2) of 2025. The realized investments also created jobs 14,103 Indonesian workers.

Riau Governor Abdul Wahid stated that this increase in realized investment was the result of collaboration between the regional government, business actors, and the community to create a welcoming investment climate.

"This investment growth is proof that investor confidence in Riau continues to grow. The provincial government is committed to maintaining this momentum by simplifying licensing processes, accelerating services, and encouraging industrial downstreaming and the green economy," he said in Pekanbaru City, Riau, on Oct. 21, 2025.

Nationally, Riau is eighth in terms of investment realization this year as of Q3 2025. Domestic investments to the province reached Rp 16.34 trillion, while foreign investments to Riau is 12th in Indonesia with US$326.6 million (around Rp 5.23 trillion at Rp16,000 per US$1).

The five regions contributing the most investment in Riau are Dumai City with Rp3.9 trillion or 18.33 percent, Siak Regency with Rp3.3 trillion or 15.44 percent, Pelalawan Regency with Rp2.9 trillion or 13.7 percent, Indragiri Hilir Regency with Rp2.9 trillion or 13.46 percent, and Rokan Hilir Regency with Rp2.5 trillion or 12.01 percent.

Meanwhile, the five polities with the most foreign investments to Riau are Malaysia with US$143.6 million (about Rp2.29 trillion) or 43.99 percent; Singapore with US$102.6 million (around Rp1.64 trillion) or 31.43 percent; Hong Kong, China with US$49.18 million (about Rp790 billion) or 15.06 percent; Seychelles with US$12.29 million (around Rp200 billion) or 3.76 percent; as well as the British Overseas Territory of Bermuda with US$8.54 million (about Rp140 billion) or 2.6 percent.

The five sectors that contributed the most investment to Riau are forestry with Rp6.01 trillion or 27.86 percent; transportation, warehousing, and telecommunications with Rp4.6 trillion or 21.37 percent, food manufacturing with Rp3.86 trillion or 17.89 percent; food crops, plantations, and livestock with Rp2.39 trillion or 11.07 percent; as well as chemical and pharmaceutical manufacturing with Rp1.45 trillion or 6.73 percent.

These five sectors contributed 84.9 percent of total investment realization to Riau in Q3 2025 The Riau Provincial Government noted that investment in downstream sectors reached Rp 10.95 trillion, or 19.59 percent of total investment for the year, by September 2025.

"This step is important so that Riau becomes not only a producer of raw materials, but also a center for value-added processing," said Abdul Wahid.

Cumulatively, realized domestic and foreign investment in Riau from the first (Q1) quarter to Q3 2025 reached Rp55.89 trillion, making the province ninth nationally and first in Sumatra Island. Domestic investments to Riau during the priod reached Rp43.9 trillion, or sixth nationally and first in Sumatra, while foreign investments reached US$749.8 million (around Rp11.99 trillion), or 15th nationally and third in Sumatra.

Several strategic projects targeted to support investment until the end of 2025 include the construction of the Rengat-Pekanbaru Section of the Pekanbaru Ring Toll Road, the development of the Buruk Bakul Industrial Estate, and the construction of a 2-gigawatt solar power plant on Rangsang Island.

"With fast and transparent public services, we are confident that investment in Riau will continue to grow—creating new jobs and improving the local community's welfare," Abdul Wahid concluded.

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