Province

Riau Island

Overview Economy

Riau Islands, a gateway in the Malacca Strait

Situated in the northern region of Indonesia, near the meeting point of Malaysia and Singapore, is the province of Riau Islands. Among the youngest provinces in Indonesia, it was formally introduced as a separate province from Riau in 2002, becoming the 32nd province in the country. Made up of more than 3.000 islands, the province offers a blend of cultural diversity, ecological beauty, and economic vitality.

With a population of 2.18 million people residing in the Riau Islands as of 2023, the province is home to several ethnic groups, such as the Malays, Bugis, and Chinese, whose customs are woven together to create the province’s cultural tapestry.

A variety of ecosystems fill the Riau Islands, including beaches, mangrove forests, and coral reefs. Notably, Bintan Island, within the province, is a popular vacation spot known for its scenery and historical monuments. As the Riau Islands attract tourists, the province is committed to eco-friendly and responsible tourism, aligning with efforts to protect its natural treasures.

The capital of Riau Islands, Batam, is distinguished by its combination of modern urban life with the natural environment. The city achieves this through its contemporary architectural style, which caters to commercial interests in the port sector without sacrificing the allure of the tropical shoreline.

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Economic uniqueness

The Riau Islands have recorded a positive trend in their Gross Regional Domestic Product (GRDP), reaching Rp 180 trillion in 2021 and increasing to Rp 190 trillion in 2022, and Rp 200 trillion in 2023. In 2023, the processing industry sector made the largest contribution to the GRDP at Rp 81 trillion, followed by the construction sector with Rp 38 trillion, and the trade sector with Rp 16 trillion.

Subsequently, the province has emerged as a major economic force, capitalizing on its advantageous location near crucial international shipping lanes. Batam, the provincial capital, has drawn investments in electronics, shipbuilding, and manufacturing, transforming itself into an industrial and economic center. The province's standing as a major player in the regional economy is further solidified through its participation in the Batam-Malaysia-Singapore Growth Triangle.

Strategically fostering economic activity, the province has established free trade zones, such as the Batam Free Trade Zone, which has been essential in promoting economic activity and international direct investment. This has made the Riau Islands an appealing location for both domestic and international firms, offering investment incentives such as tax cuts and streamlined bureaucratic procedures.

As an archipelagic province, the Riau Islands' economic activity is intricately linked to maritime connectivity. The province facilitates trade and transportation between Indonesia, Malaysia, and Singapore by acting as a marine gateway. Subsequently, ports and harbors are seeing ongoing infrastructure enhancements to improve maritime connections, facilitate commercial operations, and attract additional investment.

Moreover, the Riau Islands have shown a positive trend in economic development over the past three years, with year-over-year (YoY) growth rates of around 3.43 percent in 2021, 5.09 percent in 2022, and 5.20 percent in 2023. A key element supporting this growth, especially in the aftermath of the COVID-19 pandemic, is the increased number of international visitors to the province, with figures reaching 758,154 visitors in 2022 and 1.5 million visitors in 2023.

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Latest News

November 6, 2025

Riau Islands Province recorded 7.48 percent year-on-year (yoy) economic growth in the third quarter (Q3) of 2025 according to Statistics Indonesia (BPS) Riau Islands data's official statistics news on Nov. 5, 2025, the highest in Sumatra Island and third nationally. The performance improved from the province's 7.14 percent yoy economic growth in the second quarter (Q2) of 2025.

BPS Riau Islands head Margaretha Ari Anggorowati explained that Riau Islands' gross domestic product (GDP) at current prices reached Rp94.59 trillion, and Rp55.68 trillion at constant prices. The province's economy grew 0.85 percent quarter-to-quarter (qtq). Cumulatively, the Riau Islands' economic growth for 2025 reached 6.6 percent by Q3 2025, higher than 4.97 percent cumulative economic growth last year as of Q3 2024. 

Riau Islands' economic growth was primarily driven on the production side by the manufacturing sector, which contributed 2.8 percent, and the mining and quarrying sector at 2.07 percent. On the expenditure side, Riau Islands' gross fixed capital formation (GFCF) was the main driver, contributing 3.75 percent, followed by Net Exports at 2.46 percent.

The highest growth rate on the production side was achieved by the mining and quarrying sector with 19.83 percent, followed by the agriculture, forestry, and fisheries sector with 19.8 percent, and the electricity and gas procurement sector with 15.63 percent.

Meanwhile on the expenditure side, net exports grew 16.45 percent—indicating increased international trade activity, particularly in Batam City, Bintan Regency, and Karimun Regency. GFCF's 9.05 percent growth also demonstrated increased government and private investment through infrastructure development and strategic regional projects.

In response, Riau Islands Governor Ansar Ahmad expressed his appreciation to all economic actors and the public for their role in maintaining growth momentum.

"The Riau Islands' 7.48 percent economic growth is the result of synergy between the government, the business sector, and the public. This proves that the Riau Islands are able to recover and grow faster than many other regions," he stated in Tanjungpinang City, Riau Islands on Nov. 6, 2025.

Ansar emphasized that the Riau Islands Provincial Government will continue to strengthen productive, inclusive, and sustainable economic policies, particularly in the manufacturing industry, port infrastructure, and island electrification sectors.

"We want the Riau Islands to not only rise rapidly, but also grow with quality. Investment must create jobs, environmentally friendly industries, and ensure the benefits of development are felt by all members of society," he emphasized.

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