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

June 5, 2025

Sukanto Tanoto's Royal Golden Eagle (RGE) and French energy company TotalEnergies, signed a joint investment agreement to develop, build, and operate a solar power plant (SPP) and battery energy storage system (BESS) in Riau Province through their joint venture Singa Renewables Pte Ltd.

The joint investment agreement was officially signed on May 28, 2025, at the Merdeka Palace in Central Jakarta Administrative City, Jakarta Special Capital Region (DKI), and announced in the presence of Indonesian President Prabowo Subianto and French President Emmanuel Macron.

RGE Managing Director Imelda Tanoto stated that the agreement was part of the company's steps to strengthen regional connectivity and contribute to accelerating energy transition in the region. She added that it also reflects RGE's support for green energy independence and the development of bio-based industries through high value-added facilities.

"We are committed to creating long-term economic value for Indonesia through increased investment, development of the solar energy value chain in Indonesia, and fostering experts in the field of renewable energy," said Imelda in a press release.

On the same occasion, Total President Asia and Executive Committee Member Helle Kristoffersen said that the large-scale solar power project is a realization of the company's commitment to support energy transition efforts while ensuring energy security in the Association of Southeast Asian Nations (ASEAN) region.

"The existence of this project is expected to encourage the development of regional infrastructure in the field of renewable energy while bringing us closer to the grand vision of the ASEAN Power Grid," said Kristoffersen.

The project is targeted to provide a supply of renewable energy for domestic consumption, including for the green industrial area in Riau province, in line with Indonesia's efforts to encourage economic growth and decarbonization of key sectors. It is also expected to open up opportunities for solar power exports to Singapore, as a form of energy cooperation and renewable energy initiatives among ASEAN members.

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