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

April 22, 2025

Riau Islands Deputy Governor Nyanyang Haris Pratamura received a visit from the Pensutra Alliance Berhad delegation on Apr. 14, 2025, at the Graha Kepri Office in Batam City, Riau Islands Province. The visit is a step to strengthen collaboration in strategic investment between Riau Islands and business partners in Southeast Asia.

Pensutra is an investment and trade company that has a network of partners from various countries and sectors, and has contributed to attracting investment to several Southeast Asian countries including Vietnam, Thailand, Malaysia, Singapore, and Indonesia.

"The presence of Pensutra as one of the investment entities in Riau Islands is a strategic step that we welcome with enthusiasm. The geographical position of Riau Islands which is close to [other] Southeast Asian countries makes it a promising location for business development and investment," said Nyanyang.

He also emphasized Riau Island's various advantages in supporting export and import activities, including the existence of a free trade zone (FTZ) in Batam City, and the plan to build the Batam-Bintan Bridge which will improve connectivity and the regional economy.

"We are committed to improving investment facilities and expanding the FTZ area. With the support of infrastructure that continues to be built, we are confident that Riau Islands can be the main choice for investors," Nyanyang added.

Meanwhile, Pensutra Executive Chairman Dato' Seri Abdul Rahman Maidin expressed his commitment to bring more strategic partners to Riau Islands.

"Pensutra is ready to present our various business partners to witness firsthand Riau Island's great potential. We have found high-quality human resources, supportive infrastructure, and an investment environment that continues to develop in the region," he said.

The visit was also attended by the heads of the Riau Islands Environmental Office, the Riau Islands Industry and Trade Office, the Riau Islands One-Stop Investment and Integrated Services Office, and Rindu Purba, who represented the Riau Islands Development Targets Achievemnet Acceleration Team.

Meanwhile, Pensutra was represented by Dato’ Seri Abdul Rahman Maidin, Managing Director Chan Huan Ping, and other supporting team members.

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