Increased Exports Boost Regional Economy

With their potential, Riau Islands and North Maluku are examples of regions that can significantly improve their foreign trade balance and contribute up to 7% to their regional GRDP.

Increased Exports Boost Regional Economy
Photo: Howei Wang / Unsplash

Thanks to their potential, Riau Islands and North Maluku have been able to grow rapidly. These two provinces are examples of regions that can significantly improve their foreign trade balance and contribute up to 7% of their gross regional domestic product (GRDP).

When compared to other provinces, data analysis of regional trade balance and its contribution to GRDP during the 2020-2024 period shows diverse dynamics. Provinces that are Indonesia's main exporters, such as North Maluku, Central Sulawesi, South Kalimantan, East Kalimantan, and Riau Islands showed a significant increase in the trade balance. In fact, North Maluku recorded a surge in export value.

Riau Islands managed to grow its trade balance by 31% in the first semester of 2025. However, historically its contribution to GRDP is still relatively small, at around 2% (2024). This condition is inversely proportional to North Maluku, whose trade balance contributes around 7% to total GRDP. This shows that in some provinces, especially outside Java, export activities play a significant role in shaping GRDP.

During the January-June 2025 period, non-oil and gas exports from Riau Islands were dominated by machinery or electrical equipment. Its contribution amounted to 49.50% of total non-oil and gas exports with a value of 5,066.11 million US dollars. The main destination countries for exports from Riau Islands were Singapore (28.18%) and the United States (25.98%).

Meanwhile, in the same period, North Maluku's exports were dominated by three main commodities. Namely, iron and steel, nickel, and inorganic chemicals with a total value of US$ 6,775.45 million.

Increased exports in the two provinces that focus on the excellence of local commodities will boost the regional economy. These two provinces can be examples of success that through the identification and strengthening of superior commodities will provide added value that contributes to GRDP.