Place:Riau Islands, Indonesia

the text in this section is copied from an article in Wikipedia

The Riau Islands is a province of Indonesia. It comprises a total of 1,796 islands scattered between Sumatra, Malay Peninsula, and Borneo including the Riau Archipelago. Situated on one of the world's busiest shipping lanes along the Malacca Strait and the South China Sea (Natuna Sea), the province shares water borders with neighboring countries such as Singapore, Malaysia, and Brunei. The Riau Islands also has a relatively large potential of mineral resources, energy, as well as marine resources. The capital of the province is Tanjung Pinang and the largest city is Batam.

The Riau archipelago was once part of the Johor Sultanate, which was later partitioned between the Dutch East Indies and British Malaya after the Anglo-Dutch Treaty of 1824, in which the archipelago fell under Dutch influence. A Dutch protectorate, the Riau-Lingga Sultanate, was established in the region between 1824 and 1911 before being directly ruled by the Dutch East Indies. The archipelago became a part of Indonesia following the occupation of the Japanese Empire (1942–1945) and the Indonesian National Revolution (1945–1949). The Riau Islands separated from the province of Riau in September 2002, becoming Indonesia's third-youngest province.

A free trade zone of the Indonesia–Malaysia–Singapore Growth Triangle, the Riau Islands has experienced rapid industrialisation since the 1970s. The Riau Islands is one of the country's most prosperous provinces, having a GDP per capita of as of 2011, the fourth largest among all provinces in Indonesia after East Kalimantan, Jakarta and Riau.^[1] In addition, as of 2018, the Riau Islands has a Human Development Index of 0.748, also the fourth largest among all provinces in Indonesia after Jakarta, Special Region of Yogyakarta and East Kalimantan.

The population of the Riau Islands is heterogeneous and is highly diverse in ethnicity, culture, language and religion. The province is home to different ethnic groups such as the Malays, Tionghoa, Javanese, Minangkabau and others. Economic rise in the region has attracted many immigrants and labors from other parts of Indonesia. The area around Batam is also home to many expatriates from different countries. Approximately 80% of these are from other Asian countries, with most of the westerners coming from the United Kingdom, rest of Europe, as well as Australia and the United States. The province also has the second largest number of foreign tourist arrivals in Indonesia, after Bali.

History

the text in this section is copied from an article in Wikipedia

Etymology

There are several possible origins of the word riau. The first possible origins is that riau is derived from the Portuguese word rio, which means river. After the fall of the Malacca Sultanate in the early 16th century, the remaining Malaccan nobles and subjects fled from Malacca to mainland Sumatra while being pursued by the Portuguese. The Portuguese is believed to have reached as far as the Siak River.

The second version claims that riau comes from the word riahi which means sea water. The word is allegedly derived from the figure of Sinbad al-Bahar in the book of the One Thousand and One Nights.^[2]

Another version is that riau is derived from the Malay word riuh, which means crowded, frenzied working people. This word is believed used to reflect the nature of the Malay people in present-day Bintan. The name is likely to have become famous since Raja Kecil moved the Malay kingdom center from Johor to Ulu Riau in 1719.^[2] This name was used as one of the four main sultanates that formed the kingdoms of Riau, Lingga, Johor and Pahang. However, as the consequences of the Anglo-Dutch Treaty of 1824 between the Netherlands and United Kingdom, the Johor-Pahang sultanates fell under British influence, while the Riau-Lingga sultanates fell under Dutch influence.

Pre-sultanate era

Due to its strategic location and size, the Riau Archipelago has a rich history. Riau has for centuries been the home of Malay and Orang Laut people (sea nomads). Later migrants came from southern China and Indochina, today people from a large region of Asia has settled here. The Riau archipelago was located aside the China-India maritime trading route, and was early in the 14th century, together with Temasek (Singapore), recorded in Chinese maritime records as one of Riau archipelago's islands that was inhabited by Malay pirates.

As many as three hundred ships were used to force Chinese ships returning from the Indian Ocean into pirate harbors and to attack those who resisted. Large quantities of Chinese ceramics have been recovered on Bintan, some date back to the early Song dynasty (960–1127). An Arabian explorer, Ibnu Battuta, wrote about Riau in the 13th century: "Here there are little islands, from which armed black pirates with poised arrows emerged, possessing armed warships; they plunder people but do not enslave them." Log records of Chinese ships testify these incidents in the 12th century. Even after several centuries, the Riau archipelago, especially Bintan, is still referred to as the "Pirate Island".

During the 12th to 13th century, the Riau archipelago was a part of Srivijaya Empire on Sumatra. Sri Tri Buana, a member of the royal family of Palembang, visited Riau in 1290. The Queen of Bintan met him, and he combined flotilla of 800 vessels sailed for Bintan where he later became a king. It is also said that it was he who gave name to Singapore. Upon landing on Temasek, the old name of Singapore, he spotted an animal, which he thought was a lion, and renamed Temasek as Singapura (Lion City). He also proclaimed himself as a king of Singapore.^[3]

According to the Malay Annals, a Srivijaya prince named Seri Teri Buana, fleeing from the sacking of Palembang, stayed on Bintan for several years, gathering his strength before founding the Kingdom of Singapura (Singapore).

Sultanate era

During the rule of Sultan Mansur Shah (1459–1466), the Riau archipelago became the part of the Malacca Sultanate. The Malacca Sultanate then included Kedah, Trengganu, Pahang, Johore, Jambi, Kampar, Bengkalis, Karimun Islands and Bintan. The fall of Malacca Empire started in 1511 when Malacca fell to the Portuguese. Sultan Mahmud Shah fled to Pahang and then to Johor and Bintan in 1521. There, he held out against Portuguese attacks, he even laid siege on Malacca in 1524, before a Portuguese counterattack forced him to flee to Sumatra where he died in 1528. Sultan Alauddin succeeded his father and made a new capital in the south. His realm was the Johor Sultanate, the successor of Malacca. The archipelago became the part of "war triangle" between the Portuguese, the Johor Sultanate and the Achehnese of northern Sumatra.

Bintan may have seen many rulers during this time, as the three parties grew and declined in power. Subsequently, the Portuguese attacked Johor in 1587. The battle, known as the Siege of Johor, resulted in the Portuguese emerging victorious. The forces of Johor were incapable of preventing the heavy Portuguese infantry from landing and storming the city after a naval bombardment, and its Sultan was forced to retreat into the jungle in a rout. The Portuguese captured ample spoils, which included over 1000 cannon, the great majority of them of small caliber, 1500 firearms, and burned upwards to 2000 craft of many sizes. Following the attack, Dom Pedro de Lima (brother of Dom Paulo de Lima) also sacked Bintan, then a vassal of Johor.

After the fall of Malacca in 1511, the Riau islands became the centre of political power of the mighty Sultanate of Johor or Johor-Riau, based on Bintan Island, and were for long considered the centre of Malay culture. Like Malacca before it, Riau was also the centre of Islamic studies and teaching. Many orthodox scholars from the Muslim heartlands like the Indian Subcontinent and Arabia were housed in special religious hostels, while devotees of Sufism could seek initiation into one of the many Tariqah (Sufi Brotherhood) which flourished in Riau. In many ways, Riau managed to recapture some of the old Malacca glory. Both became prosperous due to trade but there was a major difference; Malacca was also great due to its territorial conquest. On the northern part of Sumatra around the same period, the Aceh Sultanate was beginning to gain substantial influence over the Straits of Malacca. With the fall of Malacca to Christian hands, Muslim traders often skipped Malacca in favour of Aceh or also of Johor's capital Johor Lama (Kota Batu). Therefore, Malacca and Aceh became direct competitors. With the Portuguese and Johor frequently locking horns, Aceh launched multiple raids against both sides to tighten its grip over the straits. The rise and expansion of Aceh encouraged the Portuguese and Johor to sign a truce and divert their attention to Aceh. The truce, however, was short-lived and with Aceh severely weakened, Johor and the Portuguese had each other in their sights again. During the rule of Sultan Iskandar Muda, Aceh attacked Johor in 1613 and again in 1615.^[4]

With the fall of Portuguese Malacca in 1641 and the decline of Aceh due to the growing power of the Dutch, Johor started to re-established itself as a power along the Straits of Malacca during the reign of Sultan Abdul Jalil Shah III (1623–1677). Its influence extended to Pahang, Sungei Ujong, Malacca, Klang and the Riau Archipelago.

In the early 18th century, the descendants of the Sultan and the Regent of Johor where fighting for power. Bugis aristocrats from Celebes was asked to assist the Regent of Johor, and managed to achieve control of Riau due to the internal struggle between the members of the Johor Sultanate. The Bugis were great traders and made Bintan as a major trading center. Riau and Bintan also attracted British, Chinese, Dutch, Arabic and Indian traders. The Dutch however started to look upon Riau and the Bugis as a dangerous rival to Dutch trade in the region, drawing away trade from their ports in Malacca and Batavia (Jakarta). A Dutch fleet attacked Riau in 1784 but failed to hold the islands. Another attempt later the same year also failed before they managed to break the Bugis blockade of Malacca in June 1784. The Bugis commander, Raja Haji was killed during battle and the Bugis units retreated, which opened the way for a Dutch counterattack on Riau. The Bugis was expelled from Bintan and Riau, and a treaty between the Dutch and the Malay sultans granted Dutch control over the area. The treaty caused much anger among Malay rulers, and again in 1787 a force that was offered refuge by Sultan Mahmud drove out the Dutch. This also led to the return of the Bugis and the rivalry between Bugis and Malay. Peace between the two parties was finally reached in 1803. Around this time Sultan Mahmud gave Penyengat Island as a wedding gift to his bride, Raja Hamidah, Raja Ali Haji's daughter. Penyengat became for a period the center of government, Islamic religion and the Malay culture.

Colonial rule

In 1812, the Johor-Riau Sultanate experienced a succession crisis. The death of the Mahmud Shah III in Lingga left no heir apparent. Royal custom required that the succeeding sultan must be present at his predecessor's deathbed. However at the time Mahmud Shah III died, the eldest prince, Tengku Hussein, was in Pahang to celebrate his marriage to the daughter of the Bendahara (governor). The other candidate was Tengku Hussein's half-brother, Tengku Abdul Rahman. To complicate matters, neither of the candidates was of full royal blood. The mother of Tengku Hussein, Cik Mariam, owed her origin to a Balinese slave lady and a Bugis commoner. Tengku Abdul Rahman had a similarly lowborn mother, Cik Halimah. The only unquestionably royal wife and consort of Mahmud Shah was Engku Puteri Hamidah, whose only child had died an hour after birth. In the following chaos, Engku Puteri was expected to install Tengku Hussein as the next sultan, because he had been preferred by the late Mahmud Shah. Based on the royal adat (customary observance), the consent of Engku Puteri was crucial as she was the holder of the Cogan (Royal Regalia) of Johor-Riau, and the installation of a new sultan was only valid if it took place with the regalia. The regalia was fundamental to the installation of the sultan; it was a symbol of power, legitimacy and the sovereignty of the state. Nonetheless, Yang Dipertuan Muda Jaafar (then-viceroy of the sultanate) supported the reluctant Tengku Abdul Rahman, adhering to the rules of royal protocol, as he had been present at the late Sultan's deathbed.

Rivalry between the British and the Dutch now came into play. The British had earlier gained Malacca from the Dutch under the Treaty of The Hague in 1795 and saw an opportunity to increase their regional influence. They crowned Tengku Hussein in Singapore, and he took the title Hussein Shah of Johor. The British were actively involved in the Johor-Riau administration between 1812 and 1818, and their intervention further strengthened their dominance in the Strait of Malacca. The British recognised Johor-Riau as a sovereign state and offered to pay Engku Puteri 50,000 Ringgits (Spanish Coins) for the royal regalia, which she refused. Seeing the diplomatic advantage gained in the region by the British, the Dutch responded by crowning Tengku Abdul Rahman as sultan instead. They also obtained, at the Congress of Vienna, a withdrawal of British recognition of Johor-Riau sovereignty. To further curtail the British domination over the region, the Dutch entered into an agreement with the Johor-Riau Sultanate on 27 November 1818. The agreement stipulated that the Dutch were to be the paramount leaders of the Johor-Riau Sultanate and that only Dutch people could engage in trade with the kingdom. A Dutch garrison was then stationed in Riau. The Dutch also secured an agreement that Dutch consent was required for all future appointments of Johor-Riau Sultans. This agreement was signed by Yang Dipertuan Muda Raja Jaafar representing Abdul Rahman, without the sultan's consent or knowledge.^[5]

Just as the British had done, both the Dutch and Yang Dipertuan Muda then desperately tried to win the royal regalia from Engku Puteri. The reluctant Abdul Rahman, believing he was not the rightful heir, decided to move from Lingga to Terengganu, claiming that he wanted to celebrate his marriage. The Dutch, who desired to control the Johor-Riau Empire, feared losing momentum because of the absence of mere regalia. They therefore ordered Timmerman Tyssen, the Dutch Governor of Malacca, to seize Penyengat in October 1822 and remove the royal regalia from Tengku Hamidah by force. The regalia was then stored in the crown prince's fort in Tanjung Pinang. Engku Puteri was reported to have written a letter to Van Der Capellen, the Dutch Governor in Batavia, about this issue. With the royal regalia in Dutch hands, Abdul Rahman was invited from Terengganu and proclaimed as the Sultan of Johor, Riau-Lingga and Pahang on 27 November 1822. Hence, the legitimate ruler of the Johor-Riau Empire was now Abdul Rahman, rather than the British-backed Hussein.

This led to the partition of Johor-Riau under the Anglo-Dutch treaty of 1824, by which the region north of the Singapore Strait including the island of Singapore and Johor were to be under British influence, while the south of the strait along with Riau and Lingga were to be controlled by the Dutch. By installing two sultans from the same kingdom, both the British and the Dutch effectively destroyed the Johor-Riau polity and satisfied their colonial ambitions. Under the treaty, Tengku Abdul Rahman was crowned as the Sultan of Riau-Lingga, bearing the name of Sultan Abdul Rahman, with the royal seat in Daik, Lingga. Tengku Hussein, backed by the British, was installed as the Sultan of Johore and ruled over Singapore and the Peninsular Johor.^[6][7] He later ceded Singapore to the British in return for their support during the dispute. Both sultans of Johor and Riau acted mainly as Puppet monarchs under the guidance of the colonial powers.

The globalization of the 19th century opened new opportunities for the Riau-Lingga Sultanate. Proximity to cosmopolitan Singapore, just 40 miles away, shaped the political climate of the kingdom, giving Riau Malays an opportunity to familiarize themselves with new ideas from the Middle East. The opening of Suez Canal meant a journey to Mecca via Port Said, Egypt and Singapore could take no more than a fortnight; thus these cities became major ports for the Hajj pilgrimage. Inspired by the experience and intellectual progress attained in the Middle East and influenced by the Pan-Islamism brotherhood, the Riau Malay intelligentsia established the Roesidijah (Club) Riouw in 1895. The association was born as a literary circle to develop the religious, cultural and intellectual needs of the sultanate, but as it matured, it changed into a more critical organisation and began to address the fight against Dutch rule in the kingdom. The late 19th century was marked by growing awareness among the elite and rulers of the importance of watan (homeland) and one's duty towards his or her native soil. To succeed to establish a watan, the land must be independent and sovereign, a far-cry from a Dutch-controlled sultanate. Moreover, it was also viewed that the penetration of the west in the state was slowly tearing apart the fabric of the Malay-Muslim identity.

By the dawn of the 20th century, the association had become a political tool for rising against the colonial power, with Raja Muhammad Thahir and Raja Ali Kelana acting as its backbone. Diplomatic missions were sent to the Ottoman Empire in 1883, 1895 and in 1905 to secure the liberation of the kingdom by Raja Ali Kelana, accompanied by a renowned Pattani-born Ulema, Syeikh Wan Ahmad Fatani. The Dutch Colonial Office in Tanjung Pinang labelled the organisation as a left-leaning party. The organisation also won momentous support from the Mohakamah (Malay Judiciary) and the Dewan Kerajaan (Sultanate Administrative Board). It critically monitored and researched every step taken by the Dutch Colonial Resident in the sultanate's administration, which outraged the Dutch.

The movement was an early form of Malay nationalism. Non-violence and passive resistance measures were adopted by the association. The main method of the movement was to hold symbolic boycotts. The Dutch then branded the movement as a passive resistance (Dutch: leidelek verset), and passive acts such as ignoring the raising of the Dutch flag were met with anger by the Batavia-based Raad van Indie (Dutch East Indies Council) and the Advisor on Native Affairs, Christiaan Snouck Hurgronje. Hurgronje wrote a secret letter to the Raad van Indie, advocating that the sultanate and association be crushed as resistance in the earlier Aceh War had been. Hurgronje justified this with several arguments, among which were that since 1902 the members of the Roesidijah Klub would gather around the royal court and refuse to raise the Dutch flag on government vessels. The Dutch Colonial Resident in Riau, A.L. Van Hasselt advised the Governor-General of the Dutch East Indies that the Sultan was an opponent to the Dutch and immersed with a group of hardcore resistant. Later, on 1 January 1903, the Dutch Colonial Resident found that the Dutch flag was not being raised during his visit to the royal palace. In his report to the governor he wrote; "it seems that he (Sultan Abdul Rahman II) acted as if he was a sovereign king and he raises his own flag". Based on several records in the Indonesian National Archive, there were some reports that the Sultan then apologized to the governor over the "flag incident".

On 18 May 1905, the Dutch demanded a new agreement with the sultan, stipulating further limits on the powers of the Riau-Lingga Sultanate, requiring that the Dutch flag must be raised higher than the flag of Riau, and specifying that Dutch officials should be given supreme honor in the land. The agreement further stipulated that the Riau-Lingga Sultanate was a mere loan from the Dutch Government. The agreement was drawn up due to the fact that the appointment of Sultan Abdul Rahman II had not been made with the consent of the Dutch and he was also clearly against colonial rule.

The Dutch insisted that the sultan sign the agreement, but after consulting the fellow rulers of the state, Engku Kelana, Raja Ali, Raja Hitam and other members of the ruling elite, he refused, and decided to form a military regiment under the leadership of the prince regent, Tengku Umar. During a visit of the Dutch Resident's visit to Penyengat, the sultan then, on his own authority and without Dutch approval, summoned the rulers of Reteh, Gaung and Mandah, making the Resident feel as if he was being intimidated by the sultanate. The affiliates of the Roesidijah Klub, mainly the members of the administrative class, were thus able to slowly maneuver Abdul Rahman, once a supporter of Dutch rule, to act against the colonial power's wishes.

On the morning of 11 February 1911, when the sultan and the court officials were in Daik to perform the Mandi Safar (a ritual purifying bath), ships of the Royal Netherlands Navy anchored in Penyengat Island and deployed hundreds of native soldiers (Dutch: marechausse) to lay siege to the royal court. This was followed by the arrival of Dutch official K.M Voematra from Tanjung Pinang at the Roesidijah Club headquarters to announce the deposition of Abdul Rahman II. The Dutch then seized the official coronation regalia, and to prevent their seizure by the Dutch, many official buildings were deliberately razed by members of the court themselves. A mass exodus of civilians and officials to Johor and Singapore then took place. To avoid violence and the death of civilians in Pulau Penyengat, the sultan and his officials decided not to fight the Dutch troops. The sultan and Tengku Ampuan (the Queen) left Pulau Penyengat and sailed to Singapore in the royal vessel Sri Daik, while Crown Prince Raja Ali Kelana, Khalid Hitam and the resistance movement in Bukit Bahjah followed a couple of days later. The deposed Abdul Rahman II was forced to live in exile in Singapore, where he died there in 1930 and was buried in Keramat Bukit Kasita, Kampung Bahru Road.

The Dutch officially annexed the sultanate to avoid future claims from the monarchy. Dutch direct rule over the Riau Archipelago began in 1913, and the province was administered as part of the Residency of Riau and Dependencies (Dutch: Residentie Riouw en Onderhoorigheden). The Dutch Residency consisted of Tanjung Pinang, Lingga, the Riau mainland and Indragiri, while the Tudjuh Archipelago was administered separately as part of the Pulau-Tujuh Division (Dutch: Afdeeling Poelau-Toedjoeh).

Japanese occupation and Independence

When World War II broke out, the Dutch initially seemed reluctant to defend their territories in the East Indies. This led the British to consider creating a buffer state in Riau. They discussed prospects for a restoration with Tengku Omar and Tengku Besar, descendants of the sultans, who were then based in Terengganu. However, as the war approached Southeast Asia, the Dutch actively engaged in the defensive system alongside the British, and the British decided to shelve the restoration plan.

In the aftermath of the war and the struggle against Dutch rule, several exile associations collectively known as the Gerakan Kesultanan Riau (Riau Sultanate Movement) emerged in Singapore, planning for a restoration. Some of the groups dated from as early as the dissolution of the sultanate, but started to gain momentum following the post-world war confusion and politics. From the ashes of political uncertainty and fragility in the East Indies following the World War II, a royalist faction known as the Association of the Indigenous Riau Malays (Malay: Persatoean Melayu Riouw Sedjati) (PMRS) emerged to call for the restoration of the Riau-Lingga Sultanate. The council was financially backed by rich Riau Malay émigrés and Chinese merchants who hoped to obtain tin concession. Initially founded in High Street, Singapore, the association moved to Tanjung Pinang, Riau with the unprecedented approval by the Dutch administrators. Based in Tanjung Pinang, the group managed to gain the consent of the Dutch for self-governance in the region with the foundation of the Riouw Council (Dutch: Riouw Raad, Malay: Dewan Riouw). The Riouw Council was the devolved national unicameral legislature of Riau, a position equivalent to a Parliament.

After establishing itself in Tanjung Pinang, the group formed a new organisation known as Djawatan Koewasa Pengoeroes Rakjat Riow (The Council of Riau People Administration), with the members hailing from Tudjuh Archipelago, Great Karimun, Lingga and Singkep. This group strongly advocated the restoration of the Riau-Lingga Sultanate after the status of Indonesia became official. The leader of the council, Raja Abdullah, claimed that Riau Malays were neglected at the expense of the non-Riau Indonesians who dominated the upper ranks of the Riau civil administration. By restoring the monarch, they believed the position of Riau Malays would be guarded. The royalist association met with resistance from the republican group led by Dr. Iljas Datuk Batuah that sent delegates to Singapore to counter the propaganda of sultanate supporters. Based on Indonesian archive records, Dr. Iljas gained approvals from non-Malay newcomers to Riau, including Minang, Javanese, Palembang, and Batak people. He later formed a group known as the Badan Kedaulatan Indonesia Riouw (BKRI) (Indonesian Riau Sovereign Body) on 8 October 1945. The organisation sought to absorb the Riau Archipelago into the then-newly independent Indonesia, as the archipelago was still retained by the Dutch. BKRI hoped that the new administration under Sukarno would give the pribumis a fair chance to run the local government.

The royalist association would not give any public support to the Indonesian movement, as is evident in its refusal to display the Bendera Merah-Putih (Indonesian Flag) during the Indonesian Independence Day celebration on 17 August 1947 in Singapore. This led republicans to call the royalists 'pro-Dutch'. The royalists however, maintained that Riau was a Dutch territory and that only the Dutch could support it. The Dutch countered the claims of the BKRI by granting autonomous rule to the Riau Council, in which links with the Dutch would be maintained while a restored sultanate would play a secondary role. The council, created following the decree of the Governor General of the East Indies on 12 July 1947, was inaugurated on 4 August 1947, and represented a major step forward in the revival of the monarchy system. Several key members of the PMRS were elected to the Riau Council alongside their BKRI rivals, the from Tanjung Pinang and Pulau Tujuh, local Malay leaders of Lingga and Dutch Officials in Tanjung Pinang. On 23 January 1948, the states of the Bangka Council, the Belitung Council, and the Riau Council merged to form the Bangka Belitung and Riau Federation.

The call for revival of the sultanate continued throughout the period of autonomous rule under the Riau Council, although the influence of republicanism also continued to strengthen. The appeal of revival began to subside following the dissolution of the Bangka Belitung and Riau Federation on 4 April 1950. After the official withdrawal by the Dutch in 1950, the Riau Archipelago became Keresidenan Riau under Central Sumatra Province following the absorption by the United States of Indonesia. Being one of the last territories merged into Indonesia, Riau was known as the daerah-daerah pulihan (recovered regions), and the Riau area became a province in August 1957.

The leader of Riau forces, Major Raja Muhammad Yunus, who led the bid to reestablish the sultanate apart from Indonesia fled into exile in Johor after his ill attempt. The Geopolitical roots of the Riau Archipelago had molded her nationalist position to be sandwiched between the kindred monarchist Peninsular Malay Nationalism observed across the border in British Malaya with the pro-republic and pan-ethnic Indonesian Nationalism manifested in her own Dutch East Indies domain.

Contemporary era

After the war, from 1950 the Riau archipelago was a duty-free zone till the Indonesia-Malaysia confrontation in 1963. During this period, the Malaya and British Borneo dollar used in British Malaya was the principal currency in the region. Visa free movement of people, which existed then is now no more prevalent. To affirm its fiscal stake in the region, a decree was passed on 15 October 1963 to replace the Malaya and British Borneo dollar (the circulating currency) with an Indonesian-issued currency, the Riau rupiah, which replaced the dollar at par. Although the rupiah resembled the Indonesian rupiah in appearance, it had a much higher value. Malayan money was withdrawn from 1 November 1963. The Riau rupiah was exchangeable as a foreign currency with the Indonesian rupiah. Since 1 July 1964, the Riau rupiah was no longer a valid currency, being replaced by the Indonesian rupiah at a rate of 1 Riau rupiah = 14.7 Indonesian rupiah.

Due to its proximity to Singapore and Peninsular Malaysia, the Riau Islands area became the focus point during the Indonesia–Malaysia confrontation. During this period, the territorial waters of the Riau Islands began to be visited by many Indonesian military forces who were members of the Indonesian Operations Command Corps or better known as the Indonesian Marine Corps. The city of Batam became one of the staging point of Indonesian troops during the confrontation, with the construction of military bases around the city. Anti-Malaysian guerrillas were gathered at Tanjung Balai Karimun to be trained and then sent to Sambu Island for briefing before operation. These guerrillas aimed to sabotage and spread information to help Indonesia fight the British in Malaysia, causing the economy around the Riau Islands, especially Tanjung Balai Karimun, does not function normally due to these military activities. At that time, KOPASKA special forces of the Indonesian Navy infiltrated Singapore from military bases in the Riau Islands, around Batam, Tanjung Balai Asahan and the surrounding area. They usually use small boats with outboard motors and disguise themselves as local residents who usually have relatives on the Malay Peninsula and Singapore. The coastline of Batam and the surrounding islands were heavily fortified to deter possible British and Malaysian invasion.

The end of the Indonesia-Singapore trade during the confrontation had made the economic conditions of the Riau Islands and Singaporeans disturbed. The inhabitants of Riau Islands can no longer barter or sell their produce to Singapore so that they cannot get basic necessities such as rice. Usually the basic needs of the Riau Islands population are brought in more from Singapore than anywhere else in Indonesia. Even vice versa, the supply of some needs of Singapore residents who are usually imported from the Riau Islands has been disrupted.^[8] Hostilities ceased in 1966 after the 30 September Movement attempted a coup d'état, resulting in the overthrow of the Sukarno regime which leads to a peace agreement between Indonesia and Malaysia that was signed on 28 May 1966 at Bangkok, Thailand.

With the initial aim of making Batam an Indonesian version of Singapore, according to Presidential Decree number 41 of 1973, Batam Island was designated as an industrial working area. This was supported by the Batam Island Industrial Area Development Authority, better known as the Batam Authority Agency (BOB) which is now the Batam Development Board (Indonesian: Badan Pengusahan Batam or BP Batam). In the 1980s, based on Government Regulation No. 34 of 1983, the Batam District was upgraded to the Batam Municipality. This body runs the government and community administration and supports the development carried out by the Batam Authority (BP Batam).

Some level of unity returned in the Riau region for the first time after 150 years, with the creation of the Sijori Growth Triangle in 1989. But while bringing back some economical wealth to Riau, the Sijori Growth Triangle somewhat further broke the cultural unity within the islands. With Batam island receiving most of the industrial investments and dramatically developing into a regional industrial centre, it attracted hundreds of thousands of non-Malay Indonesian migrants, changing forever the demographic balance in the archipelago. A number of studies and books have detailed the growing violence and concern about identity and social change in the archipelago. As the Malay, who were once the dominant ethnic group in the islands, have been reduced to about a third of the population, primarily as a result of immigration from elsewhere in Indonesia, they feel that their traditional rights are threatened. Similarly, the immigrants have felt politically and financially suppressed. Both of these causes have led to increased violence. Piracy in the archipelago is also an issue. There have been various attempts at both independence and autonomy for this part of Indonesia since the founding of Indonesia in 1945.

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