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Riau Province PROVINCE OVERVIEW INDONESIA INDUSTRIAL ESTATES DIRECTORY 2018-2019 Riau Province Traditional house in Riau iau is located on the central eastern coast of Sumatra; intersects with Jambi province, North Sumatera province, West Sumatera province, and Basic Data RStrait of Malacca. The capital city of Riau is Pekanbaru which is also the largest city of the province. It consists 10 regencies and 2 municipalities and has a population of Capital: Pekanbaru 6,34 million inhabitants. Major Cities: The vision of Riau, as outlined in their Regional Mid- 1. Bangkinang : 790.132 inhabitants term Development Plan 2014-2019, is to “establish an 2. Bagansiapiapi : 635.151 inhabitants advanced, competitive and prosperous society with strong 3. Bengkalis : 572.143 inhabitants Malay culture”. The provincial government set out to 4. Siak Sri Indrapura : 432.540 inhabitants realize this vision by improving infrastructure, education 5. Rengat : 417.270 inhabitants and health services, the reliability of the public sector and political stability, moreover, the provincial government’s Size of Province: 89.150 km2 measures include developing the sector of agriculture and plantation, protecting and manageing the environment Population: and tourism and accelerating poverty alleviation. (1) Province : 6.344.402 inhabitants The most important economic sectors of the province (2) Province Capital : 1.093.416 inhabitants are agriculture, forestry and fishery, mining and the processing industry. In the agricultural sector, palm oil Salary (2018): plantations have grown in recent years and as a result, The provincial monthly minimum wage : palm oil production in the province increased from about USD 182,53 7 million tons in 2011 to more than 7,81 million tons in 2015. For mining, the province of Riau has abundant fossil- related resources. However, the mining sector experienced Educational Attainment a turbulence with regards to production volumes. The DIPLOMA Undergraduate Postgraduate province’s production of crude oil decreased from 135 2,09% 2,76% 0,18% VOCATIONAL million barrels in 2012 to 83 million barrels in 2015. With 1,92% this volume of production, the province still is among the Never attending top crude oil extracting provinces of Indonesia. Moreover, school % coal extraction increased from 1,88 million metric tons 6,18 in 2012 to 2,05 million metric tons in 2013, but then SENIOR % decreased to 250.511 metric tons in 2015. Yet, in the same 19,60 Not graduated time extraction of gas increased from 5,71 million MSCF to from Elementary % 14,56 million MSCF. 20,34 Finally, the processing industry of the province of Riau Junior mostly focusses on food processing, particularly of palm % oil, and manufacturing of furniture and wooden products. 18,56 In 2015, large and medium-sized companies engaging Elementary % in food processing produced an overall manufacturing 28,37 output worth USD 9,72 billion, while large and medium- sized in the furniture and wooden products industry produced goods worth USD 2,27 billion. 14 RIAU PROVINCE ECONOMY Subsistence/common vocation Economic growth of Riau Province has been slower of Population than national growth in recent years. GRDP in 2015 reached USD 48,32 billion with the largest contributions coming from mining and excavation (30,6% of total GRDP), the processing industry (23,8%) and agriculture, forestry 1,04% MINING % and fishery (22,2%). The province contributed 5,6% to 89,82 1,34% PROCESSING INDUSTRY national GDP. Agriculture, % Trading, Hotel and Since 2006, the value of total exports (2006: USD 8,69 Veterinary, 4,33 Restaurant billion) of the province of Riau has been growing. In 2015, Forestry & exports of the province of Riau amounted to USD 14,37 Fishery 3,47% SERVICES billion, while imports amounted to USD 1,34 billion only, which left a trade surplus of USD 13,03 billion. The main export commodities in 2015 were animal and vegetable oils and fats, particularly palm oil ( USD 7,01 billion INVESTMENT export value), followed by mineral fuels (USD 3,23 billion), In 2016, the main receiving sectors of foreign pulp (USD 1,3 billion) and paper and cardboard (USD 1,21 investment were the pulp and paper industry with billion). In 2015, exports went mostly to China (USD 2,45 investments of USD 192,29 million, the artificial fibers billion export value), India (USD 1,54 billion), Japan (USD industry with USD 174,28 million, the chemical industry 1,52 billion), the United States (USD 1,44 billion), Malaysia with USD 145,66 million and the palm oil industry with (USD 802,03 million), and the Netherlands (USD 790,01 USD 107,38 million. million). The main recipients of domestic investment were With regards to the the the palm oil industry with investments of USD 132,17 import, the main countries million, the chemicals industry with USD 112,97 million of origin for import to Riau and palm oil plantation with USD 88,85 million. in 2015 were China with a total import value of USD 250,45 million, Singapore Investment Realisation with USD 196,56 million, 2000 DDI Malaysia with USD 157,24 FDI million and Canada USD Kelok 9 Bridge connects 153,43 million. Commodities 1500 Padang City to Pekanbaru or vice versa through that accounted for most Payakumbuh City imports were machinery 1000 Economic Growth (2014-2016) Year Description 500 2014 2015 2016*) Economic Growth of Province 5,86 5,14 5,26 National Economic Growth 5,01 4,88 5,02 (mio USD) 2012 2013 2014 2015 2016 *) estimated DDI 409,50 366.20 579,1 747,10 496,90 FDI 1.152,90 1.304,90 1.369,60 653,40 869,10 (USD 342,36 million), fertilizers (USD 276,58 million) and Total 1.562,40 1.671,10 1.948,70 1.400,50 1.366 mineral fuels (USD 271,53 million). Expenditures of the provincial government decreased from USD 557,41 million in 2013 to 414,49 million in Economic Resources 2014 but recovered to 574,88 million in 2015. Indirect Commodities Outlook expenditures accounted for USD 306,20 million or 54,9% of total provincial government expenditures. The rest fell Agriculture on direct expenditures. Average expenditures per month per capita in Forestry 2015 were USD 74,48, of which 49,26% were spent on food consumption, while 50,74% were spent on non- Forestry food consumption. For food consumption, the highest expenditures were on prepared food and drinks with Fishery USD 8,49, tobacco with USD 5,33 and cereals USD 5,18. For non-food consumption, the highest expenditures were on Food Processing housing and household facilities with USD 19,48. 15 PROVINCE OVERVIEW INDONESIA INDUSTRIAL ESTATES DIRECTORY 2018-2019 4 MALAYSIA Rupat North Islands Malacca Strait Sumatra Province Dumai Seaport 3 Bengkalis Island SINGAPORE Padang Islands Riau Islands Rangsang Island Province Capital City Siak River Tebingtinggi Island Siak Riv Mendol City Perawang Island er River Port Main bridge Siak River Pekanbaru River Port Toll road Sultan Syarif PEKANBARU Kasim II Airport National road 2 Medium road Small road Railroad PisangPisa International Airport IsIslands Basu West Sumatra IslandsIslan Nyiurur Domestic Airport Province Islandsndsnd 1 International Port Domestic Port / Harbour Mentawai Existing Industrial Estate Strait Jambi Industrial Estate in Development Province EXISTING INDUSTRIAL ESTATE N/A DEVELOPING INDUSTRIAL ESTATE 1 Kuala Enok Industrial Park 2 Tenayan Raya Industrial Park 3 Buruk Bakul Industrial Park 4 Patra Batu Bintang Komersial Park LAND ROAD Road : 4.167,78 Km (No Toll Road has been constructed in Riau) SEAPORT Aircraft prepare for take off at Sultan Syarif Kasim II International Airport 3 (Pekanbaru Port, Perawang Port, Dumai Port) AIRPORT 7 with Sultan Syarif Qasim II Airport as the most noticeable one. Cargo Capacity of Sultan Syarif Qasim II Airport: 11 million tons TRAIN SYSTEM There is currently no railway in Riau, but several connections are being developed in the next years. Dumai Port 16 RIAU PROVINCE The Great Mosque of Pekanbaru A full load truck of freshly cut oil palm fruits. The province has The province is rich in natural resources the largest CPO production in Indonesia DEVELOPMENT PLANT 1. Development of a railway network between Dumai– 5. Upgrading of existing refineries (RDMP). Duri and Rantau Prapat (North Sumatra). 6. Development of a hydropower plant in Lubuk 2. Development of Jambi-Pekanbaru Railway. Ambacang. 3. Construction of toll roads between Pekanbaru- 7. Development of the cement industry in Rokan Hulu. Kandis-Dumai. 8. Development of tourism resorts in North Rupat, Jemur, 4. Development of the crude palm oil and rubber Pedamaran, and Tirta Bono Island. processing industries. 9. Construction of the Kampar Kanan River Cliff Security in Kampar. STRENGTH 10. Construction of the Kampar Kiri River Control System in Kampar. 11. Development of a regional water supply system 1. The province has the largest CPO and rubber (SPAM) in Tanjung Melawan, Rokan Hilir and Simpang production in the region and has abundant Bangko. land. 2. The provinces has abundant cheap labour. 3. The long coast line and large water area of CONTACT Riau provides great potential for fishery and maritime related sectors. 4. The province is rich in natural resources, such The Agency of Capital Invesment and Integrated as oil, coal and gas. Services Riau Province 5. The province is strategically located at the Sudirman Street 460 Pekanbaru City Malacca Straits, which is the main commercial Phone : +62 (761) 39119 gateway from Indonesia to Singapore and Fax : +62 (761) 39117 Malaysia. E-mail : [email protected] Website : www.bap.riau.go.id/ 17.
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