Riau is one of the richest provinces in Indonesia and is strategically located in the centre of Sumatra island. The capital of Riau is Pekanbaru and it has a population of over 4.5 million people. The province is endowed with natural resources like petroleum, natural gas, rubber and palm oil.

The investment climate here is encouraging, supported by the country’s open economy, macro stability, trade diversity and strong commodity prices. Growth is driven internally by domestic consumption and by the income redistributed mandated by its decentralisation policies.

For Malaysian investors, there is a huge potential for infrastructure development in Indonesia, especially in Riau.

The GRDP of Riau Province was US$3 billion, registering a growth of 8.95% in 2004 and 8.53% in 2005. It ranks third among Indonesian provinces with the highest GRDP per capita in the country. In 2006, Riau was the province with the second highest domestic investment, with investments worth US$1,839.4 million from 15 projects.

Riau is known as the ‘oil province’ of Indonesia as it contributes to nearly 60% of the country’s petroleum production and it is also the largest producer of crude palm oil. With its abundant natural resources, Riau is poised to become the new economic hub of Sumatra.

Why invest in Riau?

• Strategic location
• Security and law enforcement
• Riau state-owned company as local partner
• Support from the provincial government
• Regional autonomy
• Infrastructure support
• New growth centre
• Abundant natural resources

Priority Sectors For Investors:

• Infrastructure: Toll roads, seaports, new international airport, railway
• Electricity: Based on coal, natural gas and water resources
• Public Utilities Development: Water supply, telecommunications
• Industrial Estate Development/Agribusiness/Industries: CPO factories and its downstream industries, bio-fuel/energy, industrial park, fisheries

Specific Investment Opportunities in Riau Province

1. Infrastructure
   • Pekanbaru
   • Dumai Tollway
   • Riau Railway Network
   • Development of Riau Airlines (RAL)
   • Agribusiness Terminal in Dumai
2. Bonded Zones
   • Dumai Industrial Park
   • Tanjung Buton Industrial Park (Siak Regency)
   • Kuala Enok Industrial Park (Indragiri Hilir Regency)
   • Tenayan Industrial Park (Pekanbaru)
3. Tourism Industry
   • Rupat Island Tourism Area
   • Koto Panjang Tourism Area
   • Danau Buatan Tourism Area
4. Power Stations
   • Lubuk Ambacang Hydropower Plant
   • Cerenti/Peranap (Kuantan Singingi and Indragiri Hulu Regency)
   • Minemouth Power Plant
5. Clean Water Treatment & Supply In Dumai
6. Coal Mining (Ceretin/Peranap)
7. Cement Processing
8. Downstream Industry Of Palm Oil And Rubber
9. Fisheries
10. Trading Of CPO, Coconut/Copra, Gambier, Activated Carbon/Coconut Charcoal