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Province profiles · Forest Carbon

Forest Carbon and EUDR in Riau

Updated · 3 min read · By the akar.earth specialist team

Forest carbon in Riau: deep peat on the Kampar Peninsula and Siak, Tesso Nilo, palm oil and pulpwood, peat restoration fit and heavy EUDR exposure.

Riau is Indonesia’s clearest case of peat-driven carbon risk and opportunity. Its east coast holds deep peat domes, many drained for oil palm and pulpwood, so peat rewetting and peat REDD+ are the main project types, and the province carries heavy EUDR exposure through palm oil and wood products.

Forest and land cover profile

Riau lies on the east side of Sumatra, sloping from the Bukit Barisan foothills on the western border down to wide coastal plains and the Strait of Malacca. Most of the original cover was lowland dipterocarp forest on mineral soil and peat swamp forest closer to the coast. Large areas of both have been converted.

Remaining forest blocks include Tesso Nilo National Park, known for elephants and heavily encroached by oil palm, Bukit Tigapuluh National Park on the border with Jambi, and Zamrud National Park in Siak, which protects peat swamp forest and peat lakes. The Giam Siak Kecil–Bukit Batu biosphere reserve in Bengkalis and Siak, and the Kampar Peninsula, hold some of the largest remaining peat swamp forest in Sumatra.

Peat and mangroves

Peat is the defining feature. Riau’s peat domes can be many metres deep. When canals drain them, the peat oxidises and subsides, and dry peat burns. The 2015 and 2019 fire seasons sent haze across Sumatra and into neighbouring countries, and Riau was among the provinces most affected.

Riau has been a priority province for national peat restoration since 2016, under peat ecosystem protection rules that restrict new drainage and require restoration of damaged peat. See peat restoration rules.

Mangroves line the coasts of Bengkalis, Rupat and the Indragiri Hilir delta. Some have been lost to coastal erosion and pond conversion. Mangrove restoration is a secondary blue carbon option here.

Main commodities and deforestation drivers

  • Oil palm: Riau is among Indonesia’s largest palm oil producers, with estates, plasma schemes and a very large independent smallholder sector.
  • Pulpwood: industrial acacia plantations, many on peat, supplying pulp and paper mills in the province.
  • Rubber: smallholder gardens in the western and central districts.
  • Coconut: Indragiri Hilir is one of Indonesia’s main coconut districts.

The drivers of loss have been industrial plantation development, smallholder palm expansion (including inside protected areas such as Tesso Nilo), and fire. Fire is both a cause and a consequence of drainage.

Which carbon project types fit

Project typeFit in RiauMain risk
Peat REDD+ (avoided conversion)Remaining peat swamp forest outside protected areasBaseline credibility after the conversion moratoria
Peat rewettingDrained, degraded peat in and around concessionsCanal blocking must be maintained for decades
Ecosystem restoration and IFMRestoration concessions on peatFire and encroachment
Mangrove restorationBengkalis, Rupat, Indragiri Hilir coastErosion, tenure of coastal land

Peat projects carry higher non-permanence risk because of fire. Read peatland REDD+ for how baselines, water table monitoring and buffer contributions work. National policy now restricts peat conversion and has made the primary forest moratorium permanent, which affects how a baseline scenario can be argued; see additionality.

EUDR exposure

Riau is one of the most EUDR-exposed provinces in Indonesia.

  • Palm oil: mills draw on thousands of smallholder plots. Each plot needs geolocation, and over-4-hectare plots need polygons. Fruit from plots inside forest estate or national parks fails the legality test even if planted before the cut-off. See EUDR and palm oil.
  • Wood: pulp and paper are listed derived products, so plantation wood from Riau needs plot-level geolocation of the harvest areas. See EUDR and wood.
  • Rubber: smallholder rubber has fragmented collection chains.

Satellite checks against the 31 December 2020 cut-off are straightforward in principle but difficult on peat, where fire scars and replanting complicate the record. Mass balance is not accepted.

Social forestry and customary land

Malay customary communities (masyarakat adat Melayu) and groups such as the Sakai and Talang Mamak have customary claims in Riau. Village forests (hutan desa) on peat have been granted in Siak, Pelalawan and other districts, often with fire prevention as a core activity.

Under Permenhut 6/2026, these social forestry groups are recognised carbon market participants. Peat projects led by village forest holders need strong technical partners for hydrology and fire monitoring. See social forestry carbon.

Practical next steps

Screen sites against peat depth, peat hydrological unit (KHG) maps, forest estate status and fire history. The feasibility and eligibility service covers this. Compare with North Sumatra and the islands of Riau Islands, and see the forest carbon hub for project types.

Frequently asked questions

Why is Riau so important for forest carbon?

Riau has some of the deepest and most extensive peat in Sumatra. Drained peat emits carbon every year and burns easily, so keeping peat wet or rewetting it avoids large emissions per hectare.

Which EUDR commodities come from Riau?

Palm oil above all, plus wood products from pulpwood plantations (pulp and paper are listed derived products) and smallholder rubber. Coconut, important in Indragiri Hilir, is not an EUDR commodity.

Can peat restoration in Riau generate carbon credits?

Yes, through peat rewetting and conservation activities under Verra wetland requirements, and through Indonesia's national system under Permenhut 6/2026. Hydrology, fire history and permanence risk dominate the design.

Sources

  1. European Commission – EUDR implementation
  2. Regulation (EU) 2023/1115 (EUR-Lex)
  3. Peatland and Mangrove Restoration Agency (BRGM)
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