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 Geographically, Riau is very strategic because of its place in the busy international shipping line and and connecting Hindia Ocean with South China Sea and Pacific Ocean. Riau is also directly bordered with Singapore as one of the biggest trading center in South East Asia.
Riau is often referred to as the “Oil Province”, reflecting the fact that this oil and gas-rich province is Indonesia’s main oil producer. It is proved by the oil products in 2000 amounted at 750,000 barrel daily or at 60% of oil in Indonesia, also it has a great amounted around 45 trillion M3 in Natuna Island, and bauxite in Bintan Island with the production of 1 million tons/year.
In general Riau has 36 types of potential minerals. The role of mining sector gave 53.9 % of GRDP. In last few years, the name of “Oil Province” becomes accomplished because beneath the soil of this province, there are huge large deposits of oil and gas, while on its soil, oil palms flourish of which produce palm oil. Many Incorporated estates have developed large scale plantations in Riau, particularly for commodities like palm oil and rubber.
Their steps have been followed by private national companies. Plantation, especially of coconuts and oil palms, were developed respectively on 1,022,313 ha of oil palms and 506,935 ha of coconuts. A number of private companies utilize the extensive available land by developing forests of industrial plantings. The government has encouraged the development of these forests as a source of raw materials for the wood industries in the future.
The inclusion of Riau in the context of Sijori – Singapore, Johore (Malaysia), and Riau triangle of cooperation in economic development – will accelerate regional development, especially within the Riau Archipelago. Following Batam Island development, nowadays Bintan Island was developed through involvement of private companies, both foreign and domestic.
Differing from Batam Island, Bintan is directed not only for industry and tourism businesses but also for plantation business.
Riau Province is located between Bukit Barisan mountains and South China Sea, in 1°15’ South Latitude and 4° 45’ North Latitude also 100°03’- 109°19’ East Longitude and 6° 50’ - 1°45’ West Longitude. It includes 329,867.61 km2 in which it covers 94,561.6 km2 of land area, 235,306 km2 of water area, as well as the 397,000 km2 of Exclusive Economic Zone.
Administratively, the government of this province is divided among 15 regencies/cities: (Kuantan Singingi, Indragiri Hulu, Indragiri Hilir, Pelalawan, Siak, Kampar, Rokan Hulu, Bengkalis, Rokan Hilir, Riau Archipelago, Karimun, Natuna, Pekanbaru, Batam, and Dumai.) Pelalawan regency is the longest area amounted at 11,987.90 km2, and City of Pekanbaru is the smallest area amounted at 446.5 km2. The annual rainfall is about 2,000-3,000 mm, while the temperature is between 20,9°C-35,2 °C.
GROSS REGIONAL DOMESTIC PRODUCTS
In 2000 the mining sector was the largest contribution to the province’s gross domestic product with Rp 29,889,378.03 (53.9%), followed by manufacturing sector with Rp 8,811,944.86 (15.9%), agriculture amounted at Rp 5,453,073.44 (9.8%), trade, hotel and restaurant amounted at Rp 4,439,447.90 (7.8%), Rp. 2,136,292.96 (3.9%) by services, bank/financial institutions amounted at Rp 1,790,887.22 (3.2%), transportation/communication amounted at Rp 1,493,176.83 (2.7%), Rp. 1,300,390.81 (2.4%) by construction, and electricity/gas/water amounted at Rp. 205,244.70 (0.4%). In 2001 the growth of GRDP was 14%.
ECONOMIC GROWTH
10.25% in 2000.
EXPORT-IMPORT
In 2000 oil and gas exports in 2000 were valued at Rp 14,987,421.38 while imports were valued at Rp 20,279,737.65 in the same year.
MINIMUM WAGE RATES
2002 the monthly regional minimum wage rate is between Rp. 394,000,- - Rp. 606,965,- depend on the business sector.
AGRICULTURE
The land used in Riau is 9,456,160 ha which are used for state forest totaled 3,907,840 ha (41.33%), in which 1,889,083 ha (19.98%) for plantation, ponds/parks/farms are 621,961 ha (6.58%), 480,818 ha (5.08%) for building and its yard, non-used ponds totaled 307,516 ha (3.25%), 320,236 ha (3.39%) for wood crops. Land which is not used at this time totaled 356,056 ha (3.76%), in which 222,403 ha (2.35%) for farms, grass numbered 13,224 ha (0.14%), ponds totaled 3,559 ha (0.04%), 3,269 ha (0.03%) for pig farms and the rest totaled 1,330,195 ha (14.07%) is used for others.
In period 2000 the area of food crops were 141,640 ha, corn totaled 22,253 ha, 6,665 ha for cassava, 4,159 ha for peanuts, 1,738 ha for sweet potatoes, soybean numbered 3,110 ha, and green bean numbered 1,642 ha, with rice crops products were 431,351 tons, 48,493 tons for corn, 69,722 tons for cassava, peanuts totaled 3,882 tons, sweet potatoes numbered 13,577 tons, 3,100 tons for soy bean, and green bean totaled 1,701 tons.
PLANTATION
The area of plantation consists of rubber plantation totaled 547,453 ha, 586,935 ha for coconut, 1,022,318 ha for palm, clove numbered 8,202 ha, and coffee totaled 11,704 ha. The rubber products totaled 291,679 tons, 489,763 tons for coconut, 1,772,333 tons for palm oil, 830 tons for clove, and coffee totaled 2,509 tons.
ANIMAL HUSBANDRY
In 2000, the population of animal husbandry were 105,864 cows, 420,630 buffaloes, 209,004 goats, 991 deer and 345,015 pigs.
FISHERIES
The fishery products mainly comes from ocean fishing. In 2000 the products totaled 308,808.8 tons, among others are 288,473.3 ton (93.4%) were ocean fishing and cultivation, 20,335.5 tons (6.6%) were products from hatchery.
FORESTRY
Forests area covered 9.46 millions hectares of the province. These forests consist of 3.84 million hectares (40.59%) production forests, 0.4 million hectares (4.20%) conservation forests and 5.22 million hectares (55.21%) other forests.
MINING
In 2000 natural oil amounted at 312,913.43 thousand barrels. In addition, other potential minerals were bauxite, granite, bentonite with their production respectively were 1,150,776 tons, 4,335.5 tons, 473,027.60 tons, or same as 2,968,775 m3, 2,981,130.42 m3, 21,420,388.86 m3, also oil and gas amounted at 133,769,72 MSCF/daily.
The potency of coal deposits in Kampar Regency indicates as many as 73 million tons and in Indragiri Hulu Regency amounted at 52.5 millions tons.
Other digging minerals were limestone, quartz sand, kaolin and radioactive.
(this information is taken from Wikipedia and BKPM).
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