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

August 20, 2025

Riau Governor Abdul Wahid stated at the opening of the Riau Investment Forum (RIF) 2025 that the future of the Riau economy lies in the downstream industry development of leading commodities. This year's RIF took place at the Bank Riau Kepri Syariah Dang Merdu Tower in Pekanbaru City, Riau, and it was attended by ambassadors, investors, and regional government heads in Riau.

"This year, the Investment Coordinating Board (BKPM) is targeting investment towards Riau to reach Rp95.28 trillion, the highest in Sumatra. By the first half (H1) of the year, realized investment had reached Rp46.9 trillion. This achievement places Riau first in terms of investment realization in Sumatra," Abdul Wahid revealed on Aug. 19, 2025.

He also outlined the region's key potential, from energy and mining to plantations and fisheries. Currently, Riau's oil production reaches 180,000 barrels per day, while the province's natural gas production averages 38,000 tons per year and its coal reserves amount to 1.45 billion tons.

In the plantation sector, Riau has the largest oil palm plantation area in Indonesia—which reached 3.87 million hectares with an annual production of around 9.4 million tons. There are 287 palm oil mills operating in Riau, as well as 14 cooking oil factories and three biodiesel factories.

"The potential for palm oil downstream industry development is vast, encompassing bioenergy, biochemicals, food, and consumer goods," explained Abdul Wahid.

Other leading commodities include rubber with an annual production of 352,000 tons, coconuts with annual production reaching 384,000 tons, sago with an annual production of 287,000 tons, as well as areca nut, coffee, pineapple, and catfish.

Abdul Wahid said all of those commodities has the potential for downstream industry development into products with added value, such as tires, medical gloves, virgin coconut oil, healthy food, biomaterials, and processed fishery products.

To support investment, the Riau Provincial Government is preparing several strategic industrial areas close to ports, airports, and the Trans-Sumatra Toll Road. Those locations include Tanjung Buton in Siak Regency, Tenayan in Pekanbaru City, Bukit Batu in Bengkalis Regency, Burung Island in Indragiri Hilir Regency, and Rangsang Island in the Meranti Islands Regency.

"We want investors to see Riau not just as a province, but as the future of business in Sumatra. Downstream industry development is the path to sustainable, environmentally friendly economic growth and expansive benefits for the local community," he said.

In addition, Abdul Wahid also highlighted opportunities for renewable energy development and carbon credits. He hopes that RIF 2025 will be the beginning of effective collaboration between the Riau Provincial Government, investors, and strategic partners.

"Invest in Riau, participate in downstream industry development, and let's reap the benefits together. Riau is ready to become a new center of economic growth that will not only benefit but also improve the welfare of the people," he concluded.

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