Industrial output, trade, and soaring investment fuel Kepri’s record-breaking Q2 2025 growth
Kepulauan Riau (Kepri) has emerged as Sumatra’s economic powerhouse, recording a striking 7.14% year-on-year growth in the second quarter of 2025. This exceptional performance surpasses the island’s average of 4.96%, driven by industrial momentum, investment booms, and export strength.
Trade and Industry Take the Lead
According to the official release by Badan Pusat Statistik (BPS) Kepri on August 5, Kepri’s economic expansion was anchored by the processing industry, contributing 2.91% to overall growth, followed by mining and quarrying at 2.18%. The construction sector also played a vital role with a 1.46% contribution. These sectors combined highlight Kepri’s ongoing transformation into an industrial and logistical hub in western Indonesia.
Meanwhile, international trade surged as exports climbed 21.36%, playing a central role in net export growth. Notably, non-oil and gas exports of electrical machinery soared 84.58%, while mechanical equipment exports rose 77.57%. Imports also followed suit, growing 43.53%, signaling an uptick in industrial consumption.
Explosive Investment and Energy Consumption
Investor confidence in Kepri has never been stronger. Foreign Direct Investment (FDI) grew an astounding 155.15%, while Domestic Direct Investment (DDI) surged by 110.8% year-on-year. These numbers signal a clear vote of confidence in Kepri’s regulatory climate and economic prospects.
Energy consumption also spiked. Cement procurement rose 45.22%, while electricity sales increased by 24.48%, led primarily by a 73.14% jump in industrial electricity usage. These indicators strongly suggest heightened manufacturing activity and infrastructure development throughout the region.
Mining, Tourism, and Transport on the Rise
Kepri’s mining sector also marked significant gains, with crude oil production up 44.12% and natural gas rising 31.71% from the same period last year. This recovery adds another layer of strength to the region’s export-driven momentum.
On the tourism front, foreign tourist arrivals rose by 31.64%, with strong traffic through air and sea transport, increasing by 3.75%. Destinations such as Batam, Bintan, and Tanjungpinang have become increasingly attractive, offering a blend of leisure, industry, and trade connectivity.
Regional and National Significance
Kepri now contributes 7.18% to Sumatra’s total GDP, ranking fifth after North Sumatra, Riau, South Sumatra, and Lampung. Its Gross Regional Domestic Product (GRDP) in Q2 2025 stood at Rp93.70 trillion in current prices and Rp55.21 trillion in constant prices.
Quarter-on-quarter (Q2 2025 vs Q1 2025), the province grew by 2.51%, powered by a 16.07% spike in mining and quarrying, which contributed 1.48% to the quarter’s growth. Cumulatively, Kepri’s economy expanded 6.15% in the first half of 2025—higher than last year’s 4.95%.
Kepulauan Riau’s outstanding Q2 2025 economic performance reflects strategic gains in industry, investment, and trade. The region’s export strength, coupled with massive FDI inflows and a revived tourism sector, positions it as a leading economic force in Indonesia. For neighboring Singapore and international investors, Kepri’s momentum signals deeper regional integration and long-term growth opportunities.
Sources: Batam Pos (2025) , Kepritoday (2025)
Keywords: Kepri Economy, Sumatra Growth, Investment in Kepri, Kepri Exports, Industrial Sector Kepri, Tourism in Batam
