World Report

Riau Oil wealth is funding economic development

engkalis is the richest kabupaten in Indonesia. It produces 800,000 barrels of oil per day, which is half of the total national production.
“Before autonomy we received nothing from this production. It all went to the central government,” says Bupati H. Syamsurizal.

For the past two years, things have been very different. Although the central government still takes the lion’s share – 85 per cent of the revenue – Bengkalis takes 6 per cent and the remaining 9 per cent is
distributed to the other kabupatens in Riau province. Bengkalis now earns about £63 million from oil per year. This money is being put towards developing the economy and infrastructure.

“Our vision is to make Bengkalis one of the most important trade centres in south-east Asia by 2020 with the support of strong industries and good human resources. The only problem is that we haven’t had enough time yet to build the facilities we need to support trade and economic growth in the future,” says Mr Syamsurizal.

One of Mr Syamsurizal’s top priorities is to increase the skills of the local population. “We need creative people for the future, so we have allocated 30 per cent of our budget to education. This is the largest allocation of any kabupaten in Indonesia,” he says. Mr Syamsurizal is himself completing a PhD at the University of Malaya. “My personal vision is to do my best for the people of Bengkalis, for Riau province and for Indonesia.”

H. Syamsurizal
Bupati of Bengkalis
‘We have allocated 30 per cent of our budget to education’

The majority of the population in Bengkalis is ethnically Malayan. The rest are from the Minang, Javaa, Bugis and Chinese ethnic groups. The kabupaten is comprised of six islands off the north-east coast of Sumatra and part of the mainland as well. It looks across the Malacca Straits to the Malay Peninsula and its economic giants, Singapore and Kuala Lumpur.

“You can reach Malaysia and Brunei in one hour. Thailand and China are also very close. Bengkalis is located in the middle of the growth triangle,” says Mr Syamsurizal proudly. “At the moment we are trying to attract investors from countries such as Malaysia and Singapore, and from within Indonesia itself, to come and invest in this area.”
As well as its key location, the district has huge natural potential. Its lowlands and tropical climate male it is very suitable for crops and plantations.

“We have unused land waiting for investments in the palm oil industry,” says the Bupati. Sago-processing offers another prime opportunity for investors. There are also extensive pineapple, coconut and rubber plantations.