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.

Show more

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.

Show more

Latest News

April 24, 2025

The Riau Provincial Government works to accelerate infrastructure development through strategic collaboration, which include establishing communication with foreign investors. Riau Acting Regional Secretary Taufiq OH received a visit from Chinese construction company, Yunnan Construction and Investment Holding Group Co. Ltd., on Apr. 15, 2025.

The meeting, which took place at the Riau Governor's Residence in Pekanbaru City, Riau, discussed the potential for infrastructure development cooperation in the province.

"Today we have a [visit from] an investor from China, namely Yunnan Construction. The Governor has a vision to develop Riau, of which one way is to obtain investment funds. Hence, we have discussed [a potential investment with Yunnan Construction] today a found quite large potential [for investment]," said Taufiq.

He explained that the company has a strong track record in developing industrial areas, toll roads, and other infrastructure projects across various Southeast Asian countries.

"We already know the achievements of Yunnan Construction. They are widely involved in industrial areas and infrastructure development. This is the basis for us to consider them," Taufiq stated.

For the initial stage, the cooperation is planned to start from the development of the Buruk Bakul Industrial Area in Bengkalis Regency, Riau.

"We discussed the development plan for the Buruk Bakul Industrial Area. The potential does exist in the area [to become the site of a new industrial area] based on its suitability and local wisdom. It is possible that other ares [in the province] could also become [the sites for other industrial areas]," he added.

Taufiq emphasized that the meeting was the initial step that would be continued with follow-up meetings.

"So that we can follow up on the direction from the Governor so that there is investment development, and [the project's progress has the potential to] attract other investors to Riau Province," he concluded.

Read more
April 9, 2025
March 20, 2025
March 7, 2025
February 25, 2025
February 3, 2025
January 2, 2025
October 16, 2024
October 14, 2024
Load more