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Home , Barelang Bridge, Batam, Bintan Island, Dabo Airport, Galang Island, Riau

PROVINCE OVERVIEW

INDONESIA INDUSTRIAL ESTATES DIRECTORY 2018-2019

Riau Archipelago Province Sunrise at Barelang , island

he province of Islands comprises of the highly populated islands of Batam, Bintan and Karimun Basic Data as well as smaller islands such as Bulan and TKundur. There are around 1.796 islands and a population of 1,9 million inhabitants in the province. It covers 5 Capital: Tanjung Pinang regencies and 2 municipalities with Tanjung Pinang as Major : the capital . Over 60% of ’ population are 1. Batam : 1.188.985 inhabitants concentrated in Batam. 2. Tanjung Pinang : 202.215 inhabitants The vision of the province is “the realization of the Riau Islands as a prosperous, honorable, environment Size of Province: 252.601 km² friendly and leading maritime center of Malay culture”, which refers to a firm attitude to maintain their cultural Population: heritage of Malay people and embrace modernization (1) Province : 1.973.403 inhabitants and economic prosperity at the same time. The provincial (2) Province Capital : 202.215 inhabitants government wants to achieve this by improving economic competitiveness, infrastructure, particularly inter- Salary (2018): district and intercity connectivity, education and human The provincial monthly minimum wage : resources. In doing so, it particularly targets the maritime, USD 189,92. tourism and agricultural sectors as well as manufacturing using local raw material. Moreover, the investment climate for SMEs, democratic and are to be improved. Riau Islands Province is a rapidly developing province, Educational Attainment located strategically at the Strait, one of the Undergraduate Postgraduate busiest shipping routes in the world. Besides being DIPLOMA % % one of the gateway for international tourists and trade % 3,25 0,18 VOCATIONAL 2,94 to , the province also offers foreign investors % Never attending plentiful opportunities for investment. The Free Trade 5,38 school Zone (FTZ) of Batam, Bintan, Karimun (BBK) is the most 6,96% developed region of Riau Islands and equipped with modern infrastructure such as roads, seaports, airports, power supply and industrial parks. The FTZ serves Not graduated SENIOR from Elementary % as a hot spot for exported manufacturing industries, 29,67 17,37% particularly for the electronics and shipbuilding industry. Several multinational electronics companies such as Sony, Panasonic and Phillips have settled in the province. Moreover, being located only 45 minutes by ferry from Elementary and having beautiful beaches and well Junior 19,46% developed tourism infrastructure, the province attracted 14,79% 1,8 million international visitors in 2016.

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ECONOMY Subsistence/common vocation In 2015, GRDP of Riau Islands reached USD 11,49 of Population billion, an increase of 6,02% compared to the previous year. The largest contributions to GRDP in 2015 came from the sectors of manufacturing (38,6%), construction 1,13% MINING sector (17,3%), and mining and energy (14,2%). However, 9,95% PROCESSING INDUSTRY the fastest growing sectors of the provinces in 2015 74,43% were transport and communications (growth of 8,51%), Agriculture, 3,41% Trading, Hotel and manufacturing (7,41%), financial services, lending and Veterinary, Restaurant corporate services (6,89%), and services (6,77%). In 2015, Forestry & 8,24% SERVICES the province contributed 1,74% to national GDP. Fishery % OTHERS Exports of Riau Islands decreased from USD 15,70 2,84 billion in 2014 to USD 11,94 billion in 2015. In 2015, the main exported commodities were mineral fuels with a total export value of USD 3,36 billion, followed by machinery INVESTMENT and electronics (USD 2,52 billion), iron and steel products The main receiving sectors of foreign investment (USD 1,38 billion) and engines and aircraft machinery in 2016 were the paper and pulp industry with total (USD 1,18 billion). The main countries for export were: investments of USD 2,43 billion, followed by Singapore with exports worth USD 6,39 billion, plantations with USD 140,47 million and trade in large (USD 1,03 billion and (USD 623 million). goods with USD 63,56 million. The biggest domestic Total imports of the investments in 2016 were in the basic chemical industry province decreased (fertilizers) with total investments of USD 207,85 million, from USD 10,87 billion followed by the non-metallic minerals industry with USD in 2014 to USD 8,46 175,04 million and the sector of electricity with USD 145,74 billion in 2015. Similar million. to the top exported commodities, the top Investment Realisation imported commodities 150KV power plant operating since 2015 at Batam island. of Riau Islands in 2015 800 were machinery and 700 (USD 2,23 billion), engines and aircraft machinery (USD DDI FDI 1,58 billion), iron and steel products (USD 1,22 billion) 600 and mineral fuels (USD 1,01 billion). The top countries 500 for import were again Singapore with imports worth USD 3,37 billion, Hong Kong (USD 885 million), and (723 400 million). 300 Expenditures by the provincial government of Riau Islands spending increased from USD 245,36 million 200 in 2014 to USD 271,88 million in 2015. The largest direct 100 expenditures went to personnel, service, good and capital expenditures accounted for USD 153,53 million, while indirect expenditures such as grants and subsidies (mio USD) 2012 2013 2014 2015 2016 accounted for USD 118,35 million. DDI 3,27 31,4 2,14 46 37 FDI 537 315 392 640 519 Economic Growth (2014-2016) Total 540,27 346,40 394,14 686 556 Year Description 2014 2015 2016*) Economic Resources

Economic Growth of Province 6,62 6,02 6,8 Commodities Outlook National Economic Growth 5,01 4,88 5,02 Oil and Mining *) estimated Average expenditures per capita per month of Riau Agriculture and Fishery Islands increased from USD 94,61 in 2014 to USD 99,61 in 2015. In that year, expenditures for food accounted Shipyard/Shipbuilding for USD 45,25; while non-food expenditures amounted to USD 55,01. Prepared food took USD 15,44 from food Tourism expenditures, while housing and household facilities accounted for more than half of non-food expenditures Manufacturing with USD 29,16.

39 PROVINCE OVERVIEW

INDONESIA INDUSTRIAL ESTATES DIRECTORY 2018-2019

Anambas MALAYSIA Archipelago

Natuna Archipelago

Natuna Sea Bunguran Island Batuampar Seaport Sekupang SINGAPORE t a Seaport ap SingaporeSiS ngagag Strait INDUSTRIAL ESTATE IN BATAM ISLAND Airport BatamBata m 2 IslandIslaand Bintannt Ferry to and Islandlan from Singapore Airport Batuampar Port 17 8 Ferry to and 3 from Singapore 7 6 Hang Nadim Sekupang Port International 4 5 Airport 13 Lingga Archipelago 18 9 12 16 10 14 11 Capital City Natunan Sea 1 City 15 Batam Island Main bridge Lingga Island Toll road International Airport Existing Industrial National road Domestic Airport Estate Medium road Singkepp Island International Port Industrial Estate Small road in Development Domestic Port / Harbour Railroad

EXISTING INDUSTRIAL ESTATE

1 Batamindo Industrial Park 2 Bintan Industrial Estate 3 Bintang Industrial Park I & II 4 Cammo Industrial Park Aircraft prepare for flight at Hang Nadim International airport 5 Citra Buana Centre Park LAND ROAD 6 Citra Buana Centre Park II 1.013 Km. Riau Islands has a total road length 7 Citra Buana Centre Park III network of 1013 km comprising 333 km of state road and 680 km of provincial road. 8 Executive Industrial Park 9 Hijrah Industrial Estate SEAPORT 10 Kabil Integrated Industrial Park 16 (Dompak Port, Subi Island Port, Letung Port, Kabil ( Tanjung Sauh) Malarko Port, Batu Ampar 11 Panbil Industrial Estate Port, Subang Mas Port, Tanjung Mocoh Port, 12 Puri Industrial Park 2000 Punggur Kabil Port, Belakang Port, Midai Port, Pulau Laut Port, Serasan Port, Dabo Port, 13 Sarana Industrial Point Sekupang Port) Batu Ampar Port and Sekupang Port are the two 14 International Industrial Estate main seaports for passenger and goods 15 Latrade Industrial Park AIRPORT 16 Batam 7 with Hang Nadim Airport and Raja Haji 17 Union Industrial Park Fisabilillah Airport as the more noticeable ones.

18 West Point Maritime TRAIN SYSTEM N/A

40 RIAU ISLAND PROVINCE

Two ferry crossing the . Singapore can be reached within one hour from Batam.

Aerial view of Batam island, . Shipyard industry near Kabil, Batam Island DEVELOPMENT PLANT 1. Construction of a bridge connecting Batam and 6. Development of a fishery landing site in Tanjung Batu. Bintan. 7. Development of a gas field in Natuna Island. 2. Development of the shipbuilding/shipyard Industry in 8. Development of a toll road between Batu Ampar and Batam. Hang Nadim Airport. 3. Development of gas and plants generating 9. Development of a fiber optic network across the 147 MW in total. province. 4. Development of the tourism sector with resorts, 10. Development of solid waste management in Batam. hotels and other facilities in .5. 11. Development of Muara Sei Gong Dam. Development of an integrated port zone in Tanjung Geliga. STRENGTH CONTACT

1. Riau Islands is the only Kantor Penghubung Provinsi Kepulauan Riau to be fully granted Free Trade Zone (FTZ) in Jl. Jend.Gatot Subroto Kav.326 Indonesia. Pusat - 10210 2. The islands is strategically well positioned in Telp. : +62 (21) 57939226 close proximity to Singapore and the Strait of Fax. : +62 (21) 57939225 Malacca, an international shipping route. Email : [email protected] 3. The province is the leading shipbuilding hub in [email protected] Indonesia. [email protected] 4. The tourism industry greatly benefits from day, short and long term visits from neighboring Provincial Government of Riau Islands Singapore and Malaysia. Gedung Mahmud Riayat Syah. 5. The province has a well-developed manufacturing Tanjungpinang Kepulauan Riau 29124 industry and related infrastructure with many Indonesia multinational companies producing there. Tel : +62 (771) 4575000 Website : www.kepriprov.go.id

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