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 16, 2024

The 2024 Siak Bermadah Festival, held to commemorate the 25th Anniversary of Siak Regency in Riau Province, was officially opened on Oct. 9, 2024. The festival was included for the first time with 110 other local events within the Tourism and Creative Economy Ministry's Karisma Event Nusantara (KEN) 2024 program.

The festival which took place at the Siak Bermadah Field in the non-administrative town of Siak Sri Indrapura, Riau Province was attended by thousands of people and invited guests, including Tourism and Creative Economy Ministry Expert Staff Fadjar Hutomo.

"I am impressed with the Siak tagline, 'Siak he Trully Malay'. The festival not only reflects a love of art and culture, but it also symbolizes the preservation of the unique regional culture in Siak Regency," he said.

Fadjar added that the Siak Bermadah Festival has the potential to become an international event by inviting friendly countries such as Malaysia and Brunei Darussalam.

"After I witnessed it myself, the festival can be optimized and upgraded to an international standard, so that Siak truly becomes a true [center of] Malay culture," he said.

The 2024 Siak Bermadah Festival, which took place from Oct. 9 to 12, 2024, presented various interesting activities such as artistic performances, a creative economy bazaar attended by 59 micro, small, and medium enterprises (MSMEs), a mini stage, and street food offerings.

In addition, the festival also presents traditional games of the Malay people, heritage tours, as well as cultural activities such as river tracing.

There is also a performance by Malaysian musician Baby Shima, and the closing ceremony was enlivened by Jakarta musician Charlie Van Houten. A total of 29 arts and culture studios participated in the event to showcase Siak's lasting artistic wealth.

"I am very happy to be able to witness the Siak Bermadah Festival live. This event really makes us love Malay culture even more," Nuraini, a visitor, said.

Moreover, the MSME and local culinary bazaar at Siak Bermadah Festival involved MSMEs from various regions in Siak Regency exhibiting their leading products, ranging from handicrafts, traditional foods, to traditional clothing.

"The bazaar really helps us to promote our MSME products. Hopefully our products will be better known by the wider public with a festival like this," MSME owner Ita said.

Additionally, the river tracing and heritage tour activities aim aims to introduce the natural beauty and history of Siak to visitors.

Acting Siak Regent Indra Purnama admitted in his speech that he was proud to see the enthusiasm of Siak Regency's people in supporting Siak Bermadah Festival 2024.

"Happy 25th birthday to Siak. Hopefully in its 'silver year', Siak will continue to advance and develop as well as be better known both nationally and internationally through the cultural heritage that we preserve together," Indra said.

He also hopes that the festival could continue to produce talented artists from Siak who can excel at the national and international stage.

"We will continue to strive to develop the tourism potential of Siak Regency, including by holding events like the Siak Bermadah Festival," Indra concluded.

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