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

March 20, 2025

The Siak Regency Government has established a strategic partnership with Universitas Gadjah Mada (UGM)'s Faculty of Cultural Sciences to increase the potential for the regency's Malay-based cultural tourism.

The signing of the memorandum of understanding (MoU) was carried out by Siak Regent Alfedri at the R. Soegondo Building at the FIB UGM builing in Yogyakarta City, Yogyakarta Special Region on Jan. 24, 2025

"This collaboration aims to develop the potential for Malay cultural tourism and conduct in-depth research on the legacy of the Siak Sri Indrapura Sultanate," said Alfedri.

As the former largest Malay kingdom on the coast of Sumatra, Siak has a rich historical and cultural heritage. Therefore, Alfedri noted that further studies and development are needed so that the preservation of Malay culture in Siak is more effective and sustainable.

"We are also collaborating to send students to various academic programs and cultural research," he added.

The MoU covers various aspects, including the preservation and development of Malay culture, strengthening the tourism sector, and developing cultural tourism and the creative economy.

"We hope that FIB UGM could support efforts to preserve Malay culture in Siak. As a former center of the Malay kingdom, Siak has set its vision in the [Siak Regency] RPJMD (Regional Medium-Term Development Plan) to become a center of Malay culture in Indonesia. This vision will also be strengthened by the regional regulations for the next 20 years with the tagline 'Siak the Truly Malay'," explained Alfedri.

The regent was accompanied during the signing ceremony by Siak Regency Regional Development Planning Agency (Bapperida) Head L. Budhi Yuwono, Siak Regency Education and Culture Office Head Fakhrurrozi, and Siak Tourism Office Head Tekad Perbatas Setia Dewa.

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